$1.2B Shell Plant Expansion Plans Advance
Shell Chemical LP will advance feasibility plans to build a $1.2 billion monoethylene glycol (MEG) plant at its Shell Geismar facility in Ascension Parish, La., Shell Chemical and the Louisiana Office of the Governor reported Monday.
“The successful completion of the company’s recent alpha olefins project, combined with this potential expansion, demonstrates to the world that Shell has confidence in Louisiana and recognizes our state’s tremendous physical attributes and our outstanding workforce,” Louisiana Gov. John Bel Edwards said in a written statement distributed by his office. “Louisiana looks forward to working with Shell Chemical LP to make this investment happen.”
As Rigzone reported in January of this year, Shell recently added a 425,000-tonne per year alpha olefins (AO) unit at Geismar to bring the site’s total AO manufacturing capacity to 1.3 million tonnes per annum across four units. In addition to AO, the Louisiana facility – located along the Mississippi River downriver from Baton Rouge – manufactures detergent alcohols, ethylene glycol and ethylene-based industrial chemicals, states Shell’s website.
“We at Shell are proud of our long history in Louisiana, and I’m very excited about the positive potential of this project for Shell and for the state,” Rhoman Hardy, Shell Chemicals vice president for Gulf Coast Manufacturing, said in Monday’s written statement. “We look forward to working with Governor Edwards and LED (Louisiana Economic Development) as we move forward toward a final decision.”
The written statement noted that Shell could decide to proceed with the MEG project next year. If that happens, the project would create 23 direct jobs with an average annual salary of $100,000 plus benefits, the statement added. Also, the project reportedly would create 112 indirect jobs and more than 1,000 construction jobs.
According to the governor’s office, the MEG project has already received support from the Ascension Parish council and school board for parish and local property tax abatement under Louisiana’s Industrial Tax Exemption Program. LED and Shell Chemical will hold negotiations on a incentive package prior to the final investment decision, Edwards’ office added.
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Senior Editor | Rigzone