Formosa defers major construction on US Sunshine petrochemicals project

Author: Joseph Chang

2020/10/19

NEW YORK (ICIS)--FG LA LLC, a member of the Formosa Plastics Group, has deferred major construction at its Sunshine petrochemicals project in Louisiana, a spokesperson said on Monday.

“The widespread impacts of a global pandemic, including the challenge it creates in evaluating construction costs and the restrictions it has placed on international travel, are being felt across all industries and businesses, including FG,” said Janile Parks, director of community and government relations at FG LA LLC.

“As a result, FG has deferred major construction until the pandemic has subsided and/or an effective vaccine is widely available,” she added.

FG LA LLC’s proposed chemical complex, known as the Sunshine Project, was planned to be built in two phases with an estimated total investment of around $9.4bn.

The first phase would include a 1.2m tonne/year ethane cracker, a 400,000 tonne/year linear low density polyethylene (LLDPE) unit, a 400,000 tonnes/year high density PE (HDPE) unit, an 800,000 tonne/year ethylene glycol (EG) plant, a 600,000 tonne/year propane dehydrogenation (PDH) unit and a 600,000 tonne/year polypropylene (PP) plant, according to the ICIS Supply and Demand Database.

The second phase of the project would include a 1.2m tonnes/year ethane cracker, a 400,000 tonne/year HDPE plant, a 400,000 tonne/year LLDPE plant and an 800,000 tonne/year EG plant.

The company has received all environmental permits needed to begin construction of the Sunshine Project, and the company is progressing with planned activities at the project site in St James Parish, the spokesperson noted.

“Activities will continue throughout the second half of 2020, including [the] widening Highway 3127 expansion, utility relocations, soil testing, placement of test piles and a pipeline removal. Major construction will proceed dependent on several factors,” said Parks.

Additional reporting by Zachary Moore

Thumbnail image shows PE, one of the products that would be made at the complex off FG LA LLC. Source: Elaine Thompson/AP/Shutterstock

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