Methanol Project Groundbreaking Construction Start of $1.85 billion Shandong Yuhuang Chemical Methanol Project in Louisiana

Editor: Dr. Jörg Kempf

Construction has commenced in the first phase of the Shandong Yuhuang Chemical methanol-manufacturing facility in St. James Parish. The $1.85 billion three-phase project represents the first major foreign direct investment in Louisiana by a Chinese firm.

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Vacherie, Louisiana (USA) – Louisianan Gov. Bobby Jindal and Chairman Jinshu Wang of Shandong Yuhuang Chemical marked the start of construction on a $1.85 billion methanol complex with a ceremonial groundbreaking.

Yuhuang Chemical, a subsidiary of Shandong Yuhuang Chemical, will develop the manufacturing complex along the Mississippi River in St. James Parish. The company has licensed methanol technology from Air Liquide Global E&C Solutions and picked Amec Foster Wheeler as the engineering, procurement and construction contractor to follow upon completion of Yuhuang Chemical’s front-end engineering and design work. The first phase of the methanol project is anticipated to begin operations by 2018.

After initially announcing the project in July 2014, Yuhuang Chemical purchased over 1,300 acres next to the Plains All-American Pipeline terminal and finalized plans for the three-phase project. According to these plans, after the first methanol plant is completed, two additional manufacturing projects will follow on the property over the next 10 years.

The company expects 50 percent of the methanol produced by the first phase to be sold to North American customers. The remaining 50 percent will be exported globally, where approximately 15–25 percent could be used by Shandong Yuhuang Chemical in China.

This project represents the first major foreign direct investment in Louisiana by a Chinese firm.

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