GROAB Project of the Month: IVL Restarts Cracker Shale Gas Breathes New Life into Dormant US-Cracker

Editor: Dominik Stephan

Indorama Ventures taps into US shales: The Thailand based company plans renovate and restart a dormant ethane cracker west of Lake Charles.

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(Picture: Anni-mh (CC0))

Lake Charles, Louisiana/USA – All in all, Indorama (IVL) expects to invest around US $ 175 million in the currently dormant Carlyss ethane cracker facility and approximately 250 acres of premises. The company already produces purified ethylene oxide and mono ethylene glycol in the US, with ethylene being the primary feedstock.

“With our world-scale infrastructure and outstanding workforce talent, Louisiana is leading the industrial renaissance in the US, with record levels of new petrochemical, processing and energy projects underway in our state”, stated Bobby Jindal, governor of the state of Louisiana. “Increasingly, we are witnessing the arrival of more international investors to our state because they recognize Louisiana offers the perfect blend of workforce, logistics and business climate advantages.”

The project in Carlyss will generate a production capacity of 370,000 metric tons of ethylene and 30,000 metric tons of propylene per year, with the facility capable of processing both ethane and propane. IVL currently runs intermediate petrochemical manufacturing sites located in Texas, Alabama, Georgia, North Carolina and South Carolina.

This acquisition will make us well-placed to receive cost-advantaged ethane and propane feedstock,” said IVL CEO Aloke Lohia. “We are targeting a commercial startup before the end of 2017, which will make us the first Thai company to take advantage of the shale gas revolution in the United States and ahead of the greenfield crackers being constructed. We are excited for this opportunity to join the Louisiana business community.”

To secure the project, the State of Louisiana offered the company a competitive incentive package that includes a US $ 1.5 million performance-based grant to offset site infrastructure costs.

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