Performance Contractors at Work on $7.8 Billion in Chemical Projects, Focused on Gulf Coast

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Researched by Industrial Info Resources (Sugar Land, Texas)--Performance Contractors Incorporated (Baton Rouge, Louisiana) has its hands in some of the most closely watched chemicals-related projects along the Texas and Louisiana Gulf Coast, one of the most prosperous areas of the country. Industrial Info is tracking more than $7.8 billion in active projects involving the engineering, procurement and construction (EPC) firm, including more than $5.2 billion worth that already are under construction.

Click on the image at right for a graph detailing projects involving Performance Contractors, by market segment.

The bulk of the project spending for projects featuring Performance Contractors can be found in Louisiana, where Sasol Limited (NYSE:SSL) (Johannesburg, South Africa) has the company performing mechanical services for the major phases of its massive, $11 billion Lake Charles Chemical Project (LCCP) in Westlake, Louisiana. The foremost is a ethylene unit, which is designed to produce 1.5 million metric tons per year for the complex's downstream units; these include a 450,000-metric-ton-per-year, linear low-density polyethylene (LLDPE) unit, and a 300,000-ton-per-year, ethylene oxide (EO) and ethylene glycol (EG) unit.

All three phases are under construction; the ethylene and LLDPE units are expected to wrap up in the fourth quarter, while the EO/EG unit is expected to be completed toward the end of first-quarter 2019. Sasol also plans to expand the complex's alcohol capacity through the addition of a Ziegler alcohol unit and a Guerbet alcohol unit, both of which are to be completed next summer. Ziegler is a high-purity linear primary alcohol, while Guerbet has low viscosity and better biodegradability. For more information, see Industrial Info's project reports on the ethylene, LLDPE, EO/EG, Ziegler alcohol and Guebler alcohol units.

During the recent downturn in oil prices, Sasol gradually turned its chemical business into its main profit driver. The company expects sales of $1 billion from the LCCP complex by the end of the decade, according to Bloomberg.

In Texas, Performance Contactors is at work on the addition of a polyethylene unit at a complex in La Porte. The full unit is expected to produce 1.1 billion pounds per year of polyethylene. In a recent earnings-related conference call, executives with owner LyondellBasell Industries NV (NYSE:LYB) (Houston, Texas) said the Hyperzone HDPE project is on track for startup in 2019 and is expected to see strong demand from European markets. For more information, see Industrial Info's project reports on the inside-battery and outside-battery segments.

Other ethylene projects can be found in both states. Indorama Corporation (Singapore) expects to wrap up a restart of its ethylene plant at its Lake Charles Olefins complex in Sulphur, Louisiana, later this summer. The facility will produce 970 million pounds per year of ethylene and 66 million pounds per year of propylene. Construction began in June 2016.

Also later this summer, INEOS Group AG (London, England) expects to begin construction on a ethylene furnace addition on Unit 2 at the Chocolate Bayou Olefins plant in Alvin, Texas. It is expected to increase ethylene capacity at the facility by about 250 million pounds to roughly 1.95 billion pounds per year. Performance Contractors is serving as the general contractor on the Indorama and INEOS projects. For more information, see Industrial Info's reports on the Lake Charles and Chocolate Bayou projects.

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/.