Shell Explores Options for New MEG Plant in Louisiana

May 20, 2019

3 Min Read
Shell Explores Options for New MEG Plant in Louisiana
Royal Dutch Shell is considering an investment of $1.2 billion to construct a new monoethylene glycol (MEG) plant in Louisiana. Image courtesy of Flickr user blachswan

Oil, gas and chemicals firm Royal Dutch Shell is exploring options to construct a new, $1.2 billion monoethylene glycol (MEG) plant at the company’s production complex in Geismar, LA. Shell Chemicals Vice President for Gulf Coast Manufacturing Rhoman Hardy and Louisiana Gov. John Bel Edwards announced in a Louisiana Economic Development (LED) press release Monday that Shell is progressing on feasibility plans to assess the project. 

“We at Shell are proud of our long history in Louisiana, and I’m very excited about the positive potential of this project for Shell and for the state,” said Hardy in a statement. “We look forward to working with Gov. Edwards and LED as we move forward on a decision.”

The company secured approvals earlier this year from the Ascension Parish Council and the Ascension Parish School Board for local property tax abatement through the Louisiana Industrial Tax Exemption Program

If Shell opts to move forward on the new MEG plant, 23 new jobs will be created with an average annual salary of $100,000. The company plans to make a decision on the Geismar project in 2020, according to LED.

“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,” said Gov. Edwards in the release. “Louisiana looks forward to working with Shell Chemical LP to make this investment happen.”

Operations at Shell’s Geismar site commenced in 1967. The company has carried out several major expansion projects at the complex since 1995. 

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