Shintech mulls new Louisiana ethane cracker

Shintech, a subsidiary of Japan's Shin-Etsu Chemical, has submitted an air permit for the construction of a new 500,000 metric tonne (t)/yr ethane cracker in Plaquemine, Louisiana.

If the cracker receives approval and the company makes a final investment decision (FID), construction would begin in late 2024 and have a start-up target of fall-to-winter 2027.

One of largest polyvinyl chloride (PVC) producers in the world, Shintech, already operates a 500,000 t/yr ethane-propane cracker in Plaquemine that feeds into its on-site PVC production. The company seeks to expand its PVC production and also submitted air permit applications for a new vinyl chlorine monomer (VCM) facility (Shintech Plaquemine Plant-4) that follow the same construction schedule as the new ethane cracker. The permits now await approval by the Louisiana Department of Environmental Quality (LDEQ).

Shintech's new potential cracker, named the Plaquemine Ethylene Plant-2 (PEP-2), is the second new cracker announcement for the US Gulf coast since the Covid-19 pandemic put many projects on ice. ChevronPhillips Chemical and QatarEnergy announced in November 2022 their intention to go ahead with construction of a new 2.08mn t/yr ethane cracker and two 1mn t/yr high-density polyethylene (HDPE) units in Orange, Texas. Those three units are expected to begin operations in 2026 under a JV agreement between the two companies named Golden Triangle Polymers.

By Michael Camarda