Axiall, Lotte finalize Louisiana ethane cracker investment

Axiall, Lotte finalize Louisiana ethane cracker investment

9:28 AM, 18th December 2015
Axiall, Lotte finalize Louisiana ethane cracker investment

ATLANTA, US/SEOUL, SOUTH KOREA: Axiall Corporation said that it has reached a final investment decision with Lotte Chemical Corporation, to construct an ethane-based ethylene plant in Lake Charles, US.

Anticipated to start-up in the beginning of 2019, the plant is expected to produce approx1 million metric tonne of ethylene annually. It will provide partial backward integration for Axiall’s vinyls business and will supply a new monoethylene glycol (MEG) facility being built by Lotte, adjacent to the new ethylene plant.

The state-of-the-art steam cracking facility will be built by LACC LLC, the joint-venture company recently formed by Axiall and Lotte, adjacent to Axiall’s largest chlor-alkali chemical facility, located in Lake Charles, to take advantage of Axiall’s existing infrastructure, access to competitive feedstock resources, and ethylene distribution infrastructure.

CB&I has been chosen to execute the main steam cracker contract. LACC will also engage a number of other firms to execute ancillary offsite facilities developments and tie-ins to existing infrastructure. Work is scheduled to begin in the second quarter of 2016.

“This project is a major step forward in addressing our long-term strategy of improving our ethylene cost position in our chlor-alkali business,” said Tim Mann, president and CEO, Axiall.

“We are pleased to approve these projects and look forward to starting construction in 2016 with our partner Axiall to develop a world-scale ethane cracker fed by US shale gas,” said Soo Young Huh, president and CEO, Lotte Chemical. “This investment will build on Lotte Chemical’s global ethylene construction and operating capabilities and increase our manufacturing presence in the North American market.”

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