Indorama Ventures plans to invest US$175 mln to renovate and restart a dormant ethane cracker west of Lake Charles, Louisiana. Indorama Ventures is acquiring the ethane cracker site and facilities as a joint investment with Singapore-based Indorama Corporation.
Based in Bangkok, Thailand, Indorama Ventures Public Co. Ltd. has through its U.S. subsidiary, Indorama Ventures Olefins, acquired the dormant ethane cracker facility and approximately 250 acres.
IVL already produces purified ethylene oxide and mono ethylene glycol in the U.S., with ethylene being the primary feedstock. 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,” Group CEO Aloke Lohia said. “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.”