Shell advances plans for potential $1.2B expansion in Ascension Parish

Expansion would create new jobs at existing Geismar facility
Updated: May. 20, 2019 at 11:00 AM CDT
Email This Link
Share on Pinterest
Share on LinkedIn

GEISMAR, La. (WAFB) - The Shell Group is advancing feasibility plans for a potential $1.2 billion manufacturing expansion at its facility in Ascension Parish, according to Louisiana Economic Development.

Louisiana Governor John Bel Edwards and Shell Chemicals Vice President for Gulf Coast Manufacturing Rhoman Hardy announced on May 20 that the company is currently considering building a world-scale monoethylene glycol plant at its 841-acre site in Geismar.

Monoethylene glycol, or MEG, is a key ingredient in manufacturing paints, paper, textiles, resins, coolants and adhesives.

A decision from Royal Dutch Shell to approve construction on the project could come as early as 2020.

The potential expansion at the Geismar plant would create 23 new directo jobs with an average annual salary of $100,000, plus benefits.

Officials with Louisiana Economic Development estimate the project would also result in 112 new indirect jobs, for a total of 135 new jobs in Baton Rouge area.

"Shell Chemical LP has a more than 50-year history of investment at Geismar that has provided high-quality jobs for decades, and made the site a world-class manufacturing facility. The successful completion of the company’s recent alpha olefins project, combined with this potential expansion, demonstrates to the world that Shell has confidence in Louisiana and recognizes our state’s tremendous physical attributes and our outstanding workforce. Louisiana looks forward to working with Shell Chemical LP to make this investment happen.”

The expansion of the Geismar plant has already won unanimous approval from the Ascension Parish Council (Jan. 17) and the Ascension Parish School Board (Feb. 5) for parish and local property tax abatement under Louisiana’s Industrial Tax Exemption Program.

LED and Shell Chemical will complete negotiations on an incentive package for the project prior to the final investment decision.

Shell invested $717 million to expanded the production capacity of linear alpha olefins at the Geismar facility in December 2018, making it the largest single-site manufacturer of the chemical in the world.

The Shell Geismar plant has been in operation since 1967.

Copyright 2019 WAFB. All rights reserved.