Shell Chemical LP has confirmed that it is considering an expansion of its Geismar, La. petrochemical facility by adding an additional Linear Alpha Olefin (LAO) unit. According to Shell, the proposed unit would help to meet growing global demand for products used to develop items such as synthetic and other premium lubricants and lubricant additives, polyethylene co-monomers, surfactants, and offshore drilling fluids.
Common end-uses of LAOs include motor oils, drilling fluids, household plastics (from polyethylene), and laundry detergents. The production is targeted for both domestic and global consumption.
Shell is positioning itself now for a strong chemicals future that will help us meet the needs of our customers, particularly in North America and Asia, said Rutger Beelaerts, Shell Chemicals General Manager of Higher Olefins, Alcohols & Ethoxylates. We intend to maintain our global leadership position by investing and taking further advantage of one of our existing assets to stay competitive.
The proposed expansion would utilize proprietary Shell Higher Olefins Process (SHOP) Technology that has a proven track record of success from Shells Stanlow facility in the United Kingdom to the Geismar facility in the United States. SHOP Technology allows for the creation of products that are used in both consumer and industrial applications. According to Shell Chemicals web site, the Geismar facility now has an overall capacity to produce 2 billion pounds (920,000 metric tons) per year of linear higher olefins.
If the project proceeds, the new unit would be the fourth of its kind at Shell Geismar and would take ethylene feedstock from other Shell Gulf Coast facilities.
The proposed expansion project still has several key milestones to achieve prior to reaching a final investment decision.