Shell announces final investment decision to increase Alpha Olefins production at Geismar

01-Dec-15

Shell Chemical LP (Shell) has announced the final investment decision to increase Alpha Olefins (AO) production at its chemical manufacturing site in Geismar, Louisiana, making the site the largest AO producer in the world. Shell will construct a fourth AO unit, adding 425,000 tons of capacity at an investment of US$717 mln. The new unit is expected to begin operations in 2018. "This important investment demonstrates our ongoing commitment to the growth potential in chemicals," said Graham van't Hoff, Executive Vice President for Royal Dutch Shell plc's global Chemicals business. "With the investment in new, profitable facilities, Shell Chemicals is well placed to respond to increased global customer demand for linear alpha olefins. We have strong technology, advantaged ethylene feedstock from nearby Norco and Deer Park sites, and operational flexibility to allow us to respond to market conditions." Construction of the new unit will begin in the first quarter of 2016. The new capacity brings the total AO production at Shell's Geismarsite to more than 1.3 mln tpa, the site, with a strong track record of reliable and safe performance, also produces alcohols, ethoxylates, ethylene oxide and ethylene glycols.