MOSCOW (MRC) -- A few years after completing a USD717 MM expansion of its alpha olefins production facility in Geismar, Shell Chemical LP is eyeing another USD1.4 billion project at the site to continue ramping up production, according to Hydrocarbonprocessing.
Shell Chemical on Wednesday won approval from the state Board of Commerce and Industry for an Industrial Tax Exemption Program break for the USD1.4-B project, which the company says will create a “world scale” linear alpha olefin plant at the Geismar facility. Linear alpha olefins are used to make detergents, waxes, plastics and premium lubricants.
The Geismar expansion will be the sixth time Shell Chemical has deployed its “proprietary technology” at one of its sites to produce linear alpha olefins, according to the company’s application for the ITEP incentive.
Shell Chemical’s ITEP application says project work will include building reactors, heat exchangers and compressors, as well as boilers and turbines to generate steam and electricity. Shell will also build storage tanks, a 12,000-square-foot warehouse for equipment and materials, and a 14,000-square-foot building that will house a cafeteria and safety meeting space.
Shell Chemical will receive a roughly USD17 MM property tax break for the first year of the linear alpha olefins project while paying nearly USD4.3 MM in taxes.
As MRC wrote before, Shell faces writedowns on USD400 MM in Russian downstream assets, it said, having announced USD3 B worth of other projects previously. The oil major announced on Feb. 28 that it would quit its ventures in Russia with Gazprom and related entities including the flagship Sakhalin 2 LNG plant and the Nord Stream 2 pipeline project.
We remind that Shell Chemicals expects its new petrochemical complex in southwest Pennsylvania to come online by the end of 2022, Royal Dutch Shell CFO Jessica Uhl said February 3, during the company's Q4 2021 earnings call.
Royal Dutch Shell plc is an Anglo-Dutch multinational oil and gas company headquartered in The Hague, Netherlands and with its registered office in London, United Kingdom. It is the biggest company in the world in terms of revenue and one of the six oil and gas "supermajors". Shell is vertically integrated and is active in every area of the oil and gas industry, including exploration and production, refining, distribution and marketing, petrochemicals, power generation and trading.