Market Updates

Shell Starts Production at New Petrochemicals Unit

March, 2019

Shell Chemical LP announced the start of production in a new olefin at Geismar, Louisiana. The start of operations began in December 2018. Its will be USA manufacturing site. The expansion of 425,000 tons per year brings fourth alpha olefins (AO) production to more than 1.3 million tons per year.

The alfa olefins are used as a raw material for various day to day life, such as hand soaps, detergents, motor oils and others. These are required by most of the people for daily use.

As per Executive Vice President for shell, the team has delivered a very good expansion project keeping in mind safety, time and also within budget. Also, this expansion project is considered to be the key growth project for the chemicals business of shell.  The unit is expected to meet the demand and play a major role of providing the raw materials for products for daily use.

The new facility coming up is expected to strengthen the firms leading market position in the US Gulf coast. Also, complement the strategies of its downstream businesses. Another advantage for the new facility is that it is supported with ethylene feedstock from Shell’s nearby Norco, Louisiana and Deer Park, Texas manufacturing sites, empowering the site to respond to market circumstances.

The technology utilized in the new unit is Shell Higher Olefins Process (SHOP) technology. The new unit consists approximately 18,290 meters of concrete and 85 linear kilometers of pipe and 3,570 tons of steel. A new water cooling tower has also been installed along with expansion in the rail loading capabilities.

— Vasundhra Singh,
Assistant Research Executive,
Infoholic Research