Viability Study Formosa Petrochemical Considers Construction of $9.4 Billion Complex
Formosa Petrochemical has initiated a feasibility study for the two-phase construction of a $9.4 billion industrial complex in St. James Parish, Louisiana. If built, the complex will be one of the largest, single-site ethylene production centers in the world. A final investment decision is expected by mid-2016.
St. James Parish, Louisiana (USA) – Formosa Petrochemical Chairman, Bao-Lang Chen, and Louisiana Governor, Bobby Jindal, jointly announced Formosa’s initiation of a feasibility study of a $9.4 billion industrial facility in St. James Parish.
The complex, to be located on the west bank of the Mississippi River, would be built in two project phases. The development of an ethane cracker and downstream plants in an initial phase would be followed by a doubling of those capacities in the second phase.
The complex would convert ethane to ethylene and then produce polyethylene, with customized outputs of low- and high-density polyethylene, ethylene glycol, polypropylene and other derivatives. Upon its completion, Taiwan-based Formosa would have created one of the worldwide largest, single-site ethylene production centers.
A final investment decision is expected by mid-2016. In the event of a positive outcome, construction and development of the initial phase would begin in 2016, with plant hiring starting in 2018. The second-phase ethane cracker and downstream chemical plants would begin construction in 2022, following completion of the first phase.
The State of Louisiana supports the industrial complex initiative. The Formosa Group has been active in Louisiana since 1981 with three plastics manufacturing locations in East Baton Rouge and Pointe Coupee parishes.