Feedstock ethylene shortage extends restart of Nan Ya’s MEG unit

09-Aug-10

Nan Ya’s No. 3 unit, which was idled on June 30 for a three-week maintenance, has been forced to stay shut. Taiwan's Nan Ya Plastics has been unable to restart its 350,000 tpa No. 3 monoethylene glycol (MEG) unit at Mailiao this week due to a continued shortage of ethylene feedstock, as per Platts. The Taiwanese MEG maker sources its feedstock ethylene from affiliate Formosa Petrochemicals, that has a dearth of ethylene after a fire at it's No. 1 steam cracker, with capacity to produce 700,000 tpa of ethylene. This week, Formosa Petrochemicals has purchased one spot ethylene cargo at US$900/MT CFR Taiwan for delivery in H2-August, some of which may be allocated to Nan Ya.