LBC Tank Terminals has recently announced that it has finalized all the terms of a unique agreement with MEGlobal Americas, a global leader in monoethylene glycol market. According to reports, the two companies have joined forces to construct and operate a new storage terminal that will be located besides MEGlobal’s monoethylene glycol (MEG) manufacturing plant.
To construct its new process plant, the duo has selected a site which is 60 miles south of Houston in Freeport, Texas. Sources cite that, the new terminal adjacent to the MEGlobal’s manufacturing plant will be connected through pipelines.
Industry experts speculate this agreement between LBC and MEGlobal to have taken place in response to the growing interest and demand for MEG as a raw material used for manufacturing polyester fiber. If reports are to be believed, polyester fiber is identified as a largest application segment of monoethylene glycol market that accounted for more than 50% of the overall industry share in 2015.
The Regional Business President Americas for LBC, John Grimes, was quoted stating that the company is delighted to enter into a strategic partnership and is further looking forward to working on this project with MEGlobal Americas. Given the company’s thirty years of experience in handling Glycols, industry expert cite that this agreement would enhance MEGlobal’s position in the regional monoethylene glycol industry. John Grimes further states that the project will be a success, as it fits the company’s expertise in operating, constructing and managing chemical terminals.
For the record, MEGlobal is a global leader in manufacturing, supplying, and marketing of monoethylene glycol and diethylene glycol. It has well established production facilities in Fort Saskatchewan and Alberta, Canada.
Reports state that the work on the construction of the new facility has already begun in the month of August 2017 and is slated to be in operation from 2019.