Shell weighs plan for Louisiana MEG plant

Royal Dutch Shell PLC subsidiary Shell Chemical LP is advancing feasibility studies for a potential $1.2-billion manufacturing expansion of monoethylene glycol (MEG) production at its 841-acre Geismar chemicals complex in Ascension Parish, La.

Royal Dutch Shell PLC subsidiary Shell Chemical LP is advancing feasibility studies for a potential $1.2-billion manufacturing expansion of monoethylene glycol (MEG) production at its 841-acre Geismar chemicals complex in Ascension Parish, La.

As part of the project, the operator would build an MEG plant at the site that—pending final engineering, design, and investment decisions—Shell could approve as early as 2020, the Louisiana Economic Development (LED) said.

The proposed MEG project already won unanimous approval from the Ascension Parish Council in January and the Ascension Parish School Board in February for parish and local property tax abatement under Louisiana’s industrial tax exemption program, according to LED.

LED said it will also complete negotiations with Shell Chemical on an incentive package for the project ahead of a final investment decision.

Further details regarding the MEG plant, including its proposed capacity, were not disclosed.

In late 2018, Shell Chemical completed its $717-million project to increase alpha olefins (AO) production by 425,000-tonnes/year at the Geismar chemical plant, raising total AO production at the complex—now the world’s largest AO production site—to more than 1.3 million tpy (OGJ Online, Jan. 7, 2019).

Contact Robert Brelsford at rbrelsford@ogjonline.com.

More in Optimization