Published On:June 22 2016
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Axiall and Lotte Chemical begin construction work of ethane cracker in US

LACC LLC, a joint venture between the US-based Axiall Corporation and South Korea’s Lotte Chemical Corporation, has started construction work for its $3-billion ethane cracker project at Calcasieu Parish, Louisiana.

This follows a December 17, 2015 announcement that the boards of Lotte and Axiall reached final investment decisions to construct an ethane cracker facility adjacent to Axiall’s existing Lake Charles complex. In addition to constructing the ethane cracker that is expected to produce 1 million tonnes of ethylene a year, Lotte Chemical will also construct an adjacent plant to produce 700,000 tonnes annually of ethylene glycol (EG).

“Among Korean petrochemical companies, Lotte Chemical is the first to locate a project in the US; as such, this project represents a significant investment by Lotte Chemical,” said Soo Young Huh, president and chief executive officer, Lotte Chemical.

Tim Mann, president and chief executive officer, Axiall, added, “For Axiall this commitment marks the next phase of our continued investment in the Lake Charles area. Our construction site is just west of our largest chemicals plant, where we have operated for nearly 70 years.”

Building the new chemical facilities is expected to have a positive economic impact on southwestern Louisiana. The total capital investment in the facilities is estimated to be $ 3 billion. Together, the facilities are expected to create more than 200 new direct jobs and over 1,800 indirect jobs in the community.

CB&I will execute the main steam cracker contract, using its proprietary technology, following successful completion of front-end engineering and design, and other early-stage engineering works. LACC will engage a number of other firms to execute ancillary offsite facilities developments and tie-ins to existing infrastructure.

The steam cracking facility will be built adjacent to Axiall’s largest chlor-alkali chemical facility, located in Lake Charles, to take advantage of Axiall’s existing infrastructure, access to competitive feedstock resources, and ethylene distribution infrastructure. The facility’s anticipated start-up would be in early 2019.


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