Kuwait-based EQUATE Group started its MEGlobal site's commercial production of fiber-grade, on-spec monoethylene glycol in Oyster Creek, Texas.

The plant has a nameplate capacity of 750,000 metric-tons-annually (MTa) of ethylene glycol and access to shipping routes to customers around the world.

The new plant will be operated by MEGlobal Americas Inc., a subsidiary of EQUATE Petrochemical Company and is the Group's first manufacturing facility in the United States. It will produce monoethylene and diethylene glycol, products used in a number of market applications including polyester fibers, polyethylene terephthalate (PET) bottles and packaging, antifreeze and coolants, paints, resins, deicing fluids, heat transfer fluids and construction materials.

Dr. Ramesh Ramachandran, President & CEO of EQUATE, said: "The successful execution of this project demonstrates EQUATE's ability to leverage its best-in-class practices across the globe. From safety to schedule to cost control, the MEGlobal Oyster Creek Site epitomizes our commitment to operational excellence and efficiency in order to serve the growing customer need for EG across the globe."

The new facility is the first major investment by a Kuwait-based company on the U.S. Gulf Coast. It built on the longstanding relationship between Kuwaiti partner, Petrochemical Industries Company in Kuwait (PIC) and U.S. partner, Dow Inc., a relationship that was forged during the liberation of Kuwait. That relationship led to the formation of the EQUATE Petrochemical Company, a joint venture between Dow and PIC (42.5% ownership each) as well as Boubyan Petrochemicals Co. K.S.C. (BPC) with 9% ownership and Qurain Petrochemical Industries Co. (QPIC) with 6% ownership.

EQUATE's Executive Vice President, Naser Al-Dousari, said, "The new Oyster Creek MEGlobal plant is an expansion of the Company's ethylene glycol business in order to meet fast-growing global demand. It greatly enhances our global presence and falls under our continuous plans to maximize value as a leading ethylene glycol producer and supplier."

The MEGlobal Oyster Creek plant is leveraging the U.S. shale gas advantage by utilizing ethylene from the Dow Oyster Creek facility. The site has also licensed Dow's METEOR technology for its processes.