Lotte Chemical lets contract for Louisiana MEG plant

Lotte Chemical Louisiana LLC, a subsidiary of South Korea’s Lotte Chemical Corp., has let an additional contract to CB&I, Houston, for an associated monoethylene glycol (MEG) plant to be built next to its 1 million-tonne/year ethane cracker project with Axiall Corp., Atlanta, in Lake Charles, La. (OGJ Online, June 18, 2015).

As part of the contract, valued at more than $365 million, CB&I will provide construction services for the MEG plant, the service provider said on Dec. 21.

Lotte Chemical previously let a contract to CB&I to provide construction planning and reviews, as well as early works services, for the proposed MEG unit, which will sit adjacent to the planned cracker (OGJ Online, Oct. 30, 2015).

To be owned and operated by Lotte Chemical, the $1.1-billion MEG plant, once completed, will be the nation’s largest and provide the company 600,000 tpy of MEG for export to Europe and Asia, said Soo Young Huh, Lotte Chemical’s president and chief executive.

LACC LLC, a subsidiary of Axiall and Lotte Chemical USA Corp.’s 50–50 joint venture Eagle US 2 LLC, recently announced its final investment decision to build the steam cracker and MEG plant at a total cost of $3 billion nearby Axiall’s Lake Charles chlor-alkali manufacturing plants to take advantage of existing infrastructure, competitive US shale feedstock resources, and ethylene distribution infrastructure (OGJ Online, Dec. 18, 2015).

Contact Robert Brelsford at

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