Shell to increase alphaolefin (AO) production at Louisiana Plant

07-Jan-16

Shell has decided to increase alphaolefin (AO) production at its chemical manufacturing plant 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. The plant, which is located next to the Mississippi River about 20 miles south of Baton Rouge, Louisiana, is used in the production of stronger and lighter polyethylene plastic for packaging and bottles as well as engine and industrial oils and drilling fluids. Construction of the new unit will begin in Q1-2016. The new capacity brings the total AO production at the site to more than 1.3 million tons per year. The stand-alone plant also produces alcohols, ethoxylates, ethylene oxide and ethylene glycols. "This important investment demonstrates our ongoing commitment to the growth potential in chemicals," said Graham van't Hoff, Shell's executive vice president. "With the investment in new, profitable facilities, Shell Chemicals is well-placed to respond to increased global customer demand for linear alphaolefins. 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."