Indorama Ventures (Oxide & Glycols) LLC, or IVOG, is a wholly owned subsidiary of Indorama ventures, located in Clear Lake (Houston), Texas, that produces ethylene oxide and ethylene glycols (EOEG). We are also establishing an olefins production site, Indorama Ventures Olefins LLC (IVOL), in Lake Charles, Louisiana, a neighboring state. The two companies are located 275 miles apart.
To ensure the delivery of ethylene to IVOG, which it purchases as a raw material, IVOL entered into a 10-year co-producer ethylene exchange agreement, whereby Indorama Ventures has the option to provide up to 100% of IVOL's 420 KT annual ethylene production to a co-producer for redelivery to mutually agreed-upon destinations between the parties. This agreement benefits both IVOL and the co-producer, who has excess capacity in Texas but is short of ethylene capacity in Louisiana, and also reduces pipeline transportation expenses for both parties. Moreover, it ensures that IVOG's Clear Lake EOEG plant can be adequately supplied in the event of any operating issues at a single cracker, without any disruption in supply to IVOG.