Crude Oil ( ) Brent Crude ( ) Natural Gas ( ) S&P 500 ( ) PHLX Oil ( )

Gulf coast plant expansion set to make new jobs at world’s largest alpha olefins plant

Shell Chemical Plant Map

Shell’s Geismar Chemical plant located along the Mississippi River.

Royal Dutch Shell’s (ticker: RDS.B) Shell Chemical LP announced today that it received a final investment decision to increase alpha olefin (AO) production at its chemical manufacturing site in Geismar, Louisiana. The expansion consists of a fourth AO unit, which will add 425,000 tons of capacity, making the plant the largest in the world, according to the Shell press release.

The new project will require a $717 million capital investment and create 20 direct jobs, with an average annual salary of $104,000, while retaining the 650 existing jobs at the plant, according to a joint release from Governor Bobby Jindal and Shell Geismar General Manager Rhoman Hardy.

Construction of the new unit will begin in the first quarter of 2016.  The new capacity brings the total AO production at Shell’s Geismar site to more than 1.3 million tons per annum. The AOs produced from the site will be used to produce a variety of consumer and industrial products including plastics, synthetic lubricants, drilling fluids and household detergents.


Important disclosures: The information provided herein is believed to be reliable; however, EnerCom, Inc. makes no representation or warranty as to its completeness or accuracy. EnerCom’s conclusions are based upon information gathered from sources deemed to be reliable. This note is not intended as an offer or solicitation for the purchase or sale of any security or financial instrument of any company mentioned in this note. This note was prepared for general circulation and does not provide investment recommendations specific to individual investors. All readers of the note must make their own investment decisions based upon their specific investment objectives and financial situation utilizing their own financial advisors as they deem necessary. Investors should consider a company’s entire financial and operational structure in making any investment decisions. Past performance of any company discussed in this note should not be taken as an indication or guarantee of future results. EnerCom is a multi-disciplined management consulting services firm that regularly intends to seek business, or currently may be undertaking business, with companies covered on Oil & Gas 360®, and thereby seeks to receive compensation from these companies for its services. In addition, EnerCom, or its principals or employees, may have an economic interest in any of these companies. As a result, readers of EnerCom’s Oil & Gas 360® should be aware that the firm may have a conflict of interest that could affect the objectivity of this note. EnerCom, or its principals or employees, may have an economic interest in any of the companies covered in this report or on Oil & Gas 360®. As a result, readers of EnerCom’s reports or Oil & Gas 360® should be aware that the firm may have a conflict of interest that could affect the objectivity of this report.