Shell continue alpha olefins facility expansion at Geismar
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Shell to continue alpha olefins facility expansion at Geismar

7:51 AM, 1st December 2015
Shell to continue alpha olefins facility expansion at Geismar
Shell’s Geismar, Louisiana chemical plant site, which will house the new alpha olefins production unit. (File photo)

HAGUE, NETHERLANDS: Shell Chemical LP said that it will invest $717 million in a new linear alpha olefins manufacturing unit at the company’s Ascension Parish complex. Construction is scheduled to begin in the first quarter of 2016, with operations expected to begin in 2018.

Shell has three alpha olefins units on its 800-acre Geismar, Louisiana site, located on the east bank of the Mississippi River. The new unit will produce around 425,000 tonne of alpha olefins a year. The new unit’s production will lift Shell Geismar’s total capacity to more than 1.3 million tonne, making Shell Geismar site the largest alpha olefins producer in the world.

The project will create 20 new jobs with an average salary of $104,000, according to Shell. The company already employs 650 people at its Geismar campus.

Louisiana economic development estimates that the project will also generate 93 indirect jobs. Shell estimates the project will also require 1,000 construction jobs at peak building activity.

“With the investment in new, profitable facilities, Shell Chemicals is well placed to respond to increased global customer demand for linear alpha olefins. We have strong technology, advantaged ethylene feedstock from nearby Norco and Deer Park sites, and operational flexibility to allow us to respond to market conditions,” said Graham van’t Hoff, executive VP for Shell’s global chemicals business.

“The expansion is great news for Shell Geismar and the region. Shell remains a vital economic engine in this region, and a good corporate neighbour for years to come,” said Rhoman Hardy, general manager, Shell Geismar.

The Geismarchemical site is used in the production of stronger and lighter polyethylene plastic for packaging and bottles, as well as engine and industrial oils and drilling fluids, it said.

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