Shell's Fourth Linear Alpha Olefins Unit on Track for Late 2018 Startup

Shell Chemical LP (Shell) announced a good progress on the main construction of its fourth linear alpha olefins (AO) unit at its chemical manufacturing site in Geismar, Louisiana, US.

The construction continues on track towards start-up later this year.

Shell started main site construction in January 2016, after taking a final investment decision in 2015, making the site the largest AO producer in the world.

The company is constructing a fourth AO unit, adding 425,000 tonnes of capacity. The AO4 expansion will bring total AO production at Shell's Geismar site to more than 1.3 million tonnes per annum.

Shell has completed building a cooling tower for the new AO unit, and two new storage areas, one for rail and one for the AO unit's high-purity butene.

Construction continues to progress well towards start-up later this year, with the focus on electrical and instrumentation activities, and starting commissioning of certain systems as they reach mechanical completion.

The project hit a peak of 2,000 construction workers in December last year, and the total number of permanent employees will increase to around 700 when completed.

Shell will supply advantaged ethylene feedstock from the nearby Norco and Deer Park sites. The new unit will be based on Shell's advantaged technology, known as the Shell Higher Olefins Process (SHOP) technology that has been successfully used by Shell since the 1970s.

Shell's integrated operations on the US Gulf Coast enable global reach for the products produced at Geismar, supplying petrochemicals to regional and international customers.

The chemicals produced at Shell Geismar, which celebrated its 50th anniversary in October 2017, are used in the production of stronger and lighter polyethylene plastic for packaging and bottles, as well as engine and industrial oils and drilling fluids.

"This is one of Shell's largest chemicals investments in US. We are on track to begin commercial production by the end of 2018, enabling Shell to remain an important economic engine for this region," said Graham van't Hoff, executive vice president for Royal Dutch Shell plc's global chemicals business.