 "Axiall and Lotte Chemical to set up ethane cracker in Louisiana")
Axiall Corporation and South Korea’s Lotte Chemical Corporation have reached a final investment decision to construct an ethane-based ethylene plant in Lake Charles, Louisiana, having annual capacity of approximately one million metric tonnes. The plant will provide partial backward integration for Axiall’s vinyls business and will supply a new monoethylene glycol (MEG) facility being built by Lotte, adjacent to the new ethylene plant.
“This project is a major step forward in addressing our long-term strategy of improving our ethylene cost position in our chlor-alkali business,” said Tim Mann, president and chief executive officer, Axiall.
The steam cracking facility will be built by Lacc Llc, the joint-venture company recently formed by Axiall and Lotte, adjacent to Axiall’s largest chlor-alkali chemical facility, located in Lake Charles, to take advantage of Axiall’s existing infrastructure, access to competitive feedstock resources, and ethylene distribution infrastructure. The facility’s anticipated start-up would be the beginning of 2019.
“We are pleased to approve these projects and look forward to starting construction in 2016 with our partner Axiall to develop a world-scale ethane cracker fed by US shale gas. This investment will build on Lotte Chemical’s global ethylene construction and operating capabilities and increase our manufacturing presence in the North American market,” said Soo Young Huh, president and chief executive officer, Lotte Chemical.
“This project is a major step forward in addressing our long-term strategy of improving our ethylene cost position in our chlor-alkali business,” said Tim Mann, president and chief executive officer, Axiall.
The steam cracking facility will be built by Lacc Llc, the joint-venture company recently formed by Axiall and Lotte, adjacent to Axiall’s largest chlor-alkali chemical facility, located in Lake Charles, to take advantage of Axiall’s existing infrastructure, access to competitive feedstock resources, and ethylene distribution infrastructure. The facility’s anticipated start-up would be the beginning of 2019.
More From This Section
CB&I has been chosen to execute the main steam cracker contract, using its proprietary technology, following successful completion of front-end engineering and design, and other early-stage engineering works. Lacc will engage a number of other firms to execute ancillary offsite facilities developments and tie-ins to existing infrastructure. Work began in the fourth quarter of 2015 to clear and prepare the site ahead of construction, which is scheduled to begin in the second quarter of 2016.
“We are pleased to approve these projects and look forward to starting construction in 2016 with our partner Axiall to develop a world-scale ethane cracker fed by US shale gas. This investment will build on Lotte Chemical’s global ethylene construction and operating capabilities and increase our manufacturing presence in the North American market,” said Soo Young Huh, president and chief executive officer, Lotte Chemical.