Formosa acquires land in St James, Louisiana for new US petchem complex

Source: ICIS News


HOUSTON (ICIS)--Formosa Petrochemical Corp has purchased a 2,400-acre (972-ha) site in St James Parish, Louisiana for its new $9.4bn chemical complex, the US state’s governor and the company’s CEO announced on Monday.

Formosa representatives told ICIS last month that FG LA LLC, a Louisiana-registered subsidiary of the Taiwan-headquartered producer, was working on the permitting process for phase 1.

To be completed in 2022, phase 1 includes a 1.2m tonne/year cracker, 600,000 tonne/year propane dehydrogenation (PDH) unit, 600,000 tonne/year polypropylene (PP) plant, 400,000 tonne/year high density polyethylene (HDPE) plant, 400,000 tonne/year linear low density polyethylene (LLDPE) plant and 900,000 tonne/year ethylene glycol (EG) unit.

On Monday, Louisiana Governor John Bel Edwards and Formosa CEO Keh-Yen Lin said the complex has been branded as “The Sunshine Project”, and FG could begin construction as soon as 2019, pending approval of permits.

“The new Sunshine Project continues that bridge into a brighter economic future for Louisiana, one with an estimated 8,000 construction jobs at peak, even more permanent jobs upon completion, and a multibillion-dollar impact on earnings and business purchases for decades to come,” Edwards said.

To secure the project, the state offered an incentive package that would include a $12m performance-based grant to offset infrastructure costs.

In developing its site within the Port of South Louisiana District, FG will join the largest port by tonnage in the Western Hemisphere, Monday’s news release said. The port district spans 54 miles (87 km) between Baton Rouge and New Orleans.

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