Louisiana's Ascension Parish Sees an Increase in Chemical Processing Activity

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Researched by Industrial Info Resources (Sugar Land, Texas)--Louisiana has traditionally been one of the epicenters of the Chemical Processing Industry (CPI). In recent months, the 300 square miles that comprise Ascension Parish have seen a dramatic increase in planned CPI project activity. Industrial Info is tracking 29 capital projects with a total investment value (TIV) of $6 billion within the small county. Of those 29 projects, 16 are valued at more than $100 million each.

This is a significant increase from previous years, when nine-figure investments seemed few and far between. These large investments are a direct result of the low cost of natural gas available, whether they are expanding capacity of fertilizers, ethylene or downstream chemicals.

Shell Chemical Company (Houston, Texas), a division of Royal Dutch Shell plc (NYSE:RDS.A) (The Hague, Netherlands), is looking to spend approximately $1.4 billion on five new expansion projects over the next five years at its plant in Geismar, Louisiana. Two modular, skid-mounted units are being planned for installation to liquefy natural gas being brought in via waterway and land. The first unit is to begin construction by the end of this year, with the second unit to begin construction in 2016. Also being considered for construction is a third ethylene oxide unit, a fourth alpha olefins unit and a third isomerization-disproportionation unit, which isomerizes the alpha olefins. All these units are in the planning phase, but are expected to begin construction in 2014.

Apart from large expansion projects, the Geismar area has seen its share of incidents recently. Williams Olefins LLC's (Tulsa, Oklahoma) plant experienced an explosion when propylene ignited on June 13, 2012. The investigation into the cause and damages of this plant is expected to take at least two months, after which they hope to determine a plan of action. This plant was in the process of installing two new furnaces to expand its ethylene production capacity by 600 million pounds per year. The construction had been under way since September 2012 and was to be completed this Fall during a routine maintenance turnaround. However, at this time, it is still unclear how the recent explosion will affect the current expansion and the future maintenance work previously scheduled by the end of the year.

Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, and eight offices outside of North America, 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.