Formosa Buys Louisiana Site for Complex
Taiwan’s Formosa Petrochemical has bought a 2,400-acre site in St. James Parish, Louisiana, USA, for its proposed $9.4 billion petrochemical complex located along the west bank of the Mississippi River, just downriver from the Sunshine Bridge.
Termed the Sunshine Project, the complex will be built in two phases over a 10-year period. The first phase is to comprise a 1.2 million t/y ethylene plant together with associated polymer plants, one ethylene glycol (EG) unit and a propane dehydrogenation (PDH) facility. The second phase would consist of a second 1.2 million t/y ethylene plant, polymer plants and another EG unit.
Pending the completion and approval of permits, Formosa could start construction in 2019. The first phase is said to be due for completion in 2022.
Governor of Louisiana, John Bel Edwards, said the Sunshine Project will provide an estimated 8,000 construction jobs at peak, even more permanent jobs upon completion and a multibillion-dollar impact on earnings and business purchases for decades to come.
The state has offered an incentive package that includes a $12 million performance-based grant to offset infrastructure costs. This would be paid in four installments of $3 million starting in 2021, the projected first year for hiring permanent employees.
The project has been on the drawing board for a few years. In September 2015, Louisiana officials announced that Formosa was studying the feasibility of building a complex in St. James Parish. At that time, the company was anticipating making a final investment decision in 2016.
Formosa already operates three existing facilities in Louisiana – at East Baton Rouge and Pointe Coupee.
