Shell starts production at new petrochemicals unit in US Gulf Coast

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Notes to Editors

• Shell started main construction on the fourth AO unit at Geismar in 2016, after taking a final investment decision in November 2015.
• The new unit utilises Shell’s advantaged technology, known as the Shell Higher Olefins Process (SHOP) technology.
• The expansion emphasised working with local companies. The primary contractor was Turner Industries, which was founded and is headquartered in nearby Baton Rouge, Louisiana. There were more than 2,000 construction workers employed and an additional 20 permanent jobs created.
• The Shell Geismar Chemical Plant is located next to the Mississippi River, about 20 miles south of Baton Rouge, Louisiana. It is a standalone chemicals manufacturing plant, operated by Shell Chemical LP. The site produces alpha olefins, alcohols, ethoxylates, ethylene oxide and ethylene glycols.
• Shell’s global chemicals business sells more than 18 million metric tons of petrochemicals per year.
• Shell’s world-class integrated refining and chemicals plants are in Asia-Pacific (Singapore), Europe (the Netherlands), and North America (the US Gulf Coast and Canada).
• Shell operates three major petrochemical facilities in the USA at Deer Park, Texas; Norco and Geismar in Louisiana; and additional chemicals manufacturing in Canada at Scotford and Sarnia.
• We draw strength from being part of an integrated energy company; we benefit from shared infrastructures, access to a variety of feedstocks, and deep manufacturing and processing expertise. This gives Shell a competitive advantage over stand-alone chemicals companies.
• For more details, visit www.shell.com/chemicals.

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With respect to operating costs synergies indicated, such savings and efficiencies in procurement spend include economies of scale, specification standardisation and operating efficiencies across operating, capital and raw material cost areas.

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