Axiall and Lotte Chemical announce Louisiana ethane cracker final investment decision

Axiall Corp. and Lotte Chemical Corp. of the Republic of Korea have announced that the companies have reached a final investment decision to construct an ethane-based ethylene plant in Lake Charles, Louisiana. The plant is expected to produce approximately 1 million tpy of ethylene. 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.

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.

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 4Q15 to prepare the site ahead of construction, which is scheduled to begin in 2Q16.

“Today’s announcement represents a significant investment for the long-term benefit of both of our companies and a significant milestone in our company’s history,” said Tim Mann, Axiall President and CEO. “This project is a major step forward in addressing our long-term strategy of improving our ethylene cost position in our chlor-alkali business.”

“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 U.S. shale gas,” said Soo Young Huh, Lotte Chemical President and CEO. “This investment will build on Lotte Chemical’s global ethylene construction and operating capabilities and increase our manufacturing presence in the North American market.”

Edited from press release by Angharad Lock

Read the article online at: https://www.hydrocarbonengineering.com/petrochemicals/18122015/axiall-and-lotte-chemical-invest-in-ethane-cracker-2013/