In order to minimize the impact of the closure on its customers, Shell Chemical LP has recently taken the following steps: - increased the high purity ethylene oxide production capacity for its remaining units at Geismar and
- entered into contractual supply and ethylene toll agreements to access additional ethylene glycol (EG) and ethylene oxide.
"Any decision to close a production facility is difficult, but Shell Chemicals continues to invest significantly in EO/EG worldwide," said Bill Rothwell, vice president of Shell chemical companies’ EO/glycols businesses. “We are shutting one of the Geismar units down because it was built in the 1960s and it would need significant maintenance capital in order to continue to run. We could not justify such an investment in a unit of this age.” Rothwell emphasized that the Shell chemical companies remain committed to the ethylene glycol and ethylene oxide industry and will continue manufacturing and selling EG and EO to third-party customers. “We are also in the process of growing our ethylene oxide derivatives businesses, including Neodol® ethoxylates, 1-3 propanediol and the associated polymer Corterra®,” he added. Shell chemical companies are furthering their commitment to the industry by: evaluating a further expansion of ethylene oxide purification at Geismar, debottlenecking an existing EO/glycols unit in The Netherlands, and studying the feasibility of building a new facility in Singapore. In addition, CNOOC and Shell Petrochemicals Company Limited (CSPC) has invested in the Nanhai petrochemical complex in southern China. CSPC is a joint venture among China National Offshore Oil Corporation (CNOOC), 45 percent ownership; Royal Dutch/Shell Group, 50 percent ownership; and Guangdong Investment and Development Company, 5 percent ownership. After the Geismar Unit-1 closure, Shell chemical companies will continue to operate three EO/glycols units in North America – two at Geismar and one in Scotford, Canada. The combined remaining capacity maintains Shell Chemicals’ status as the second largest EO/monoethylene glycol (MEG) producer in North America. Shell Chemicals collectively refers to the companies of the Royal Dutch/Shell Group engaged in the chemicals business. Shell chemical companies manufacture and deliver petrochemical building blocks and polyolefins to industrial customers. These products are widely used in plastics, coatings and detergents.  www.shellchemicals.com
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