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Ineos Declares Force Majeure on 420,000 t/y Ethylene Oxide Unit at Bayport, Texas

Ineos Oxide, a subsidiary of the Ineos Group, has declared force majeure on its 420,000 t/y ethylene oxide (EO) unit at Bayport, Texas. Sources told S&P Global Platts that the unit has been in unplanned shutdown and maintenance since October 16 due to technical issues. For sourcing EO-chain derivatives, buyers can explore the Monoethanolamine product page.

Unplanned Shutdown and Force Majeure

The Bayport site’s downstream units include a 375,000 t/y monoethylene glycol (MEG) unit and a 165,000 t/y glycol ether unit. Market participants expect the outage to impact supply of MEG and glycol ether products. As of now, the restart timeline remains undetermined; when approached by media for comment on October 27, the company declined to comment.

Ripple Effects Across MEG, DEG and Polyols

A producer said that before the force majeure announcement, the market had estimated a MEG supply surplus of 38,000–48,000 tonnes for November–December. Trading participants told Platts the shutdown will also ripple through related supply chains. A polyol buyer said that despite weak end-user demand, polyester polyol prices have continued to rise recently, with producers attributing the increase mainly to tight diethylene glycol (DEG) supply.

Market Assessments and Background

The Bayport EO site was acquired by Ineos from LyondellBasell in 2023. Platts assessments on October 23 showed US Gulf Coast spot DEG at 53 cents/lb, down 2.5 cents/lb week on week; MEG at 28 cents/lb FOB, down 0.25 cents/lb week on week. The ongoing outage is a key variable to watch for global MEG, DEG and glycol ether balances entering Q4.


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