Reconfigured methanol plant promises 75 direct jobs, 350 indirect jobs for River Region
Published 12:03 am Wednesday, January 9, 2019
ST. JAMES — South Louisiana Methanol is stepping in to lead a $2.2 billion project on the West Bank of St. James Parish first announced more than five years ago.
Preliminary work on the project began last year at a 1,500-acre Mississippi River site.
South Louisiana Methanol could begin formal construction later this year, according to Gov. John Bel Edwards, subject to successful negotiations with a new joint venture partner, a Houston-based subsidiary of Saudi Arabia-based SABIC.
South Louisiana Methanol is looking to create one of the world’s largest methanol production sites.
Originally announced in 2013 as a project of Texas-based ZEEP Inc. and New Zealand-based Todd Corporation, South Louisiana Methanol is now majority-owned by Todd Corporation and will pursue the joint-venture methanol project with SABIC.
Louisiana officials estimate the methanol project would create 75 new jobs with an average annual salary of $71,400, plus benefits. In addition, the project would result in an estimated 350 new indirect jobs while generating 800 construction jobs at peak building activity.
South Louisiana Methanol is assembling the 1,500-acre site along the West Bank of the Mississippi River, approximately eight miles south of the Sunshine Bridge.
“South Louisiana Methanol and SABIC recognize that our industrial corridor along the Mississippi River delivers the highest-performance port, pipeline and rail logistics available in the world,” Edwards said. “We’re especially pleased that these global investors have confidence in Louisiana’s manufacturing workforce, the most productive in the nation, and that they will be contributing significantly to our economy in the coming years.”
To secure the methanol project in St. James Parish, Louisiana Economic Development renegotiated incentive terms with South Louisiana Methanol, which has not yet received incentives from the State of Louisiana for the project.
South Louisiana Methanol will be eligible for a $5 million performance-based grant, with $1.5 million payable upon the company making a minimum of $150 million in capital expenditures in the state.
That portion of the performance-based grant would not be received prior to June 1. The remaining $3.5 million would be payable upon the start of plant operations and no earlier than June 1, 2022.
Methanol’s applications range from plastics to polyester fibers and fabrics, fuels, pharmaceuticals and adhesives.
Ready access to affordable supplies of shale natural gas have led to the development of multiple methanol projects in Louisiana.
St. James Parish President Timmy Roussel said the new facility would continue to diversify the parish’s tax base and provide stability to the revenues used to educate local children and serve the needs of St. James residents and businesses.
“Their commitment to utilize the services of our local businesses and suppliers will strengthen and expand our economy,” Roussel said. “And the resulting employment, both during construction and in their long-term operations, will reaffirm the fact that St. James Parish and the River Region is a great place to live, work, play and grow.”
Port of South Louisiana Executive Director Paul Aucoin said the news adds to the two new large projects recently announced this past year, “all good news for our port district and Louisiana.”