Korean Company To Build Largest Monoethylene Glycol Plant In US; Two Plants; $3 Billion -- December 18, 2015

Oil & Gas Journal is reporting:

Axiall Corp., Atlanta, and South Korea’s Lotte Chemical Corp, Seoul, have reached a final investment decision to proceed with plans to build a 1 million tonne/year ethane-based cracker and associated monoethylene glycol (MEG) plant in Lake Charles, LA.

LACC LLC, a subsidiary of Axiall and Lotte Chemical USA Corp.’s 50–50 joint venture Eagle US 2 LLC, will invest $1.9 billion to build the steam cracker adjacent to Axiall’s Lake Charles chlor-alkali manufacturing plants to take advantage of existing infrastructure, competitive US shale feedstock resources, and ethylene distribution infrastructure, according to a series of releases from the JV and Louisiana Economic Development.

Adjacent to the new steam cracker, Lotte separately will invest an additional $1.1 billion to build and operate the US’ largest MEG plant, from which 600,000 tpy of MEG will be exported to customers in Europe and Asia.

With site preparation already under way and full construction due to begin during second-quarter 2016, the grassroots cracker and MEG plant are scheduled for startup in early 2019.

And not even a footnote in US mainstream media and perhaps not even in the WSJ.

From another source this headline regarding the above story: Axiall Corp. and Lotte Chemical Plan Two $3 Billion Chemical Plants In Lake Charles, Louisiana. The headline is a bit misleading: the two plants together result in a $3 billion investment.

Combined, the projects will create 215 new direct jobs, with the ethane cracker producing 135 new direct and the monoethylene glycol, or MEG, facility producing 80 new direct jobs.

Lotte will be the sole owner of the MEG plant, with construction on that site and the ethane cracker expected to begin in 2016. Upon completion of the MEG plant, Lotte plans to export more than 600 kilotons per year to customers abroad. The ethane cracker is expected to open in early 2019, with an annual capacity of 1 million tons. Axiall plans to acquire 50 percent of that plant’s output for making vinyl chloride monomer and other products.

I think the 350 new direct jobs is more jobs than the Obama administration's multi-trillion-dollar stimulus program created.

Monoethylene glycol (MEG) is an important raw material for industrial applications. A primary use of MEG is in the manufacture of polyester (PET) resins, films and fibers. In addition, MEG is important in the production of antifreezes, coolants, aircraft anti-icer and deicers and solvents.

A minor note to: Europe does not produce any fossil fuels of its own, so it doesn't produce any MEG from indigenous sources. Not only is the US becoming the leader in fossil fuel production but will be (or already is) the leader in refined products.

The North Dakota-to-Texas/Louisiana corridor is the energy and agricultural engine of the US.