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Researched by Industrial Info Resources (Sugar Land, Texas)--Formosa Plastics Corporation USA has been one of the leading contributors to investment spending along the U.S. Gulf Coast in recent years. The division of Taiwanese conglomerate Formosa Plastics Group expects to see a series of high-capacity production projects wrap up in 2020, and is picking up key approvals for one of its most ambitious developments. Industrial Info is tracking nearly $11 billion in active projects involving Formosa's U.S. subsidiary, including $2.6 billion worth nearing or under construction.
Click on the image at right to see a map of Formosa USA's active projects along the U.S. Gulf Coast.
Formosa began construction on one of its largest ongoing projects, a low-density polyethylene (LDPE) unit addition at its facility in Point Comfort, Texas, toward the end of 2016. The multi-grade addition will produce about 881 million pounds per year of LDPE. Formosa had planned on completing and starting up the unit at the end of last year, but pushed its startup date back to April. For more information, see Industrial Info's project report.
Two other additions at the Point Comfort facility are expected to wrap up before the LDPE unit: a cogeneration power unit that will raise the plant's electrical output from 900 to 1,200 megawatts (MW) via a pair of combined-cycle turbines and a steam turbine, and an air-separation unit (ASU) that will produce about 1,200 tons per day of oxygen and nitrogen. Early next year, the company expects to finish work on a third production train at the Polypropylene No. 2 Unit, with a 551 million-pound-per-year output. For more information, see Industrial Info's reports on the cogeneration unit, ASU and polypropylene projects.
One of Formosa's longest-delayed projects, the expansion of a polyvinyl chloride (PVC) resins unit at its complex in Baton Rouge, Louisiana, is in its detailed-engineering design phase, with construction projected to begin toward the end of the year. Formosa said in November that it now expects the revamped unit, which will have its 949 million-pound-per-year capacity increased about 20%, to be fully operational in the fourth quarter of 2021. For more information, see Industrial Info's project report.
Formosa is considering two additional projects at the Baton Rouge facility that could begin construction as early as September and October, respectively: a hydrochloric acid (HCI) unit addition and upgrades to the PVC utilities unit. The latter would involve the installation of a new compressor and a pair of HCI tanks. For more information, see Industrial Info's project reports on the proposed HCI unit and utilities upgrades.
But Formosa's highest-profile project is facing a series of legal challenges. The company has yet to make a final investment decision on the proposed ethylene unit at its St. James Parish Petrochemical Complex in Gramercy, Louisiana, but recently has been notching up state and federal permit approvals. The unit would produce 2.65 billion pounds per year of ethylene, and would be joined by the 2 billion-pound-per-year ethylene glycol unit, the 1.3 billion-pound-per-year polypropylene unit, the 882 million-pound-per-year high-density polyethylene (HDPE) unit and the 882 million-pound-per-year linear low-density polyethylene (LLDPE) unit.
Although Formosa Plastics secured all necessary air permits for the ethylene unit last month from the Louisiana Department of Environmental Quality (DEQ), several environmental groups, including the Center for Biological Diversity and Louisiana Bucket Brigade, are suing to halt construction. Opponents argue the proposed project would emit more toxic pollution into nearby communities and contribute millions of tons of new greenhouse gases, according to Louisiana's The Advocate. Formosa has promised 1,200 high-paying jobs and 3,400 temporary construction jobs related to the project, and hundreds of millions of dollars in tax revenues.
Collectively dubbed the Sunrise Project, the units would not begin construction until first-quarter 2022 at the earliest. "The schedule likely will be challenged as a result of opposition, but we do expect the Sunshine Project will move ahead," said Trey Hamblet, Industrial Info's vice president of research for the Chemical Processing Industry.
For more information on Sunshine's various units, see Industrial Info's project reports on the ethylene, ethylene glycol, polypropylene, and HDPE/LLDPE units.
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, six offices in North America and 12 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities. Follow IIR on: Facebook - Twitter - LinkedIn. For more information on our coverage, send inquiries to info@industrialinfo.com or visit us online at http://www.industrialinfo.com/.
Click on the image at right to see a map of Formosa USA's active projects along the U.S. Gulf Coast.Formosa began construction on one of its largest ongoing projects, a low-density polyethylene (LDPE) unit addition at its facility in Point Comfort, Texas, toward the end of 2016. The multi-grade addition will produce about 881 million pounds per year of LDPE. Formosa had planned on completing and starting up the unit at the end of last year, but pushed its startup date back to April. For more information, see Industrial Info's project report.
Two other additions at the Point Comfort facility are expected to wrap up before the LDPE unit: a cogeneration power unit that will raise the plant's electrical output from 900 to 1,200 megawatts (MW) via a pair of combined-cycle turbines and a steam turbine, and an air-separation unit (ASU) that will produce about 1,200 tons per day of oxygen and nitrogen. Early next year, the company expects to finish work on a third production train at the Polypropylene No. 2 Unit, with a 551 million-pound-per-year output. For more information, see Industrial Info's reports on the cogeneration unit, ASU and polypropylene projects.
One of Formosa's longest-delayed projects, the expansion of a polyvinyl chloride (PVC) resins unit at its complex in Baton Rouge, Louisiana, is in its detailed-engineering design phase, with construction projected to begin toward the end of the year. Formosa said in November that it now expects the revamped unit, which will have its 949 million-pound-per-year capacity increased about 20%, to be fully operational in the fourth quarter of 2021. For more information, see Industrial Info's project report.
Formosa is considering two additional projects at the Baton Rouge facility that could begin construction as early as September and October, respectively: a hydrochloric acid (HCI) unit addition and upgrades to the PVC utilities unit. The latter would involve the installation of a new compressor and a pair of HCI tanks. For more information, see Industrial Info's project reports on the proposed HCI unit and utilities upgrades.
But Formosa's highest-profile project is facing a series of legal challenges. The company has yet to make a final investment decision on the proposed ethylene unit at its St. James Parish Petrochemical Complex in Gramercy, Louisiana, but recently has been notching up state and federal permit approvals. The unit would produce 2.65 billion pounds per year of ethylene, and would be joined by the 2 billion-pound-per-year ethylene glycol unit, the 1.3 billion-pound-per-year polypropylene unit, the 882 million-pound-per-year high-density polyethylene (HDPE) unit and the 882 million-pound-per-year linear low-density polyethylene (LLDPE) unit.
Although Formosa Plastics secured all necessary air permits for the ethylene unit last month from the Louisiana Department of Environmental Quality (DEQ), several environmental groups, including the Center for Biological Diversity and Louisiana Bucket Brigade, are suing to halt construction. Opponents argue the proposed project would emit more toxic pollution into nearby communities and contribute millions of tons of new greenhouse gases, according to Louisiana's The Advocate. Formosa has promised 1,200 high-paying jobs and 3,400 temporary construction jobs related to the project, and hundreds of millions of dollars in tax revenues.
Collectively dubbed the Sunrise Project, the units would not begin construction until first-quarter 2022 at the earliest. "The schedule likely will be challenged as a result of opposition, but we do expect the Sunshine Project will move ahead," said Trey Hamblet, Industrial Info's vice president of research for the Chemical Processing Industry.
For more information on Sunshine's various units, see Industrial Info's project reports on the ethylene, ethylene glycol, polypropylene, and HDPE/LLDPE units.
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, six offices in North America and 12 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities. Follow IIR on: Facebook - Twitter - LinkedIn. For more information on our coverage, send inquiries to info@industrialinfo.com or visit us online at http://www.industrialinfo.com/.
