Entergy Louisiana has entered into two agreements to supply power to LACC, LLC and Lotte Chemical Louisiana LLC facilities in southwest Louisiana, the Entergy (NYSE:ETR) subsidiary said June 8.
Under the contract, Entergy Louisiana could supply up to 30 MW of power monthly to LACC’s ethylene cracker facility, as well as 45 MW of power to Lotte’s mono-ethylene glycol (MEG) plant. Both chemical plants will be located on the same piece of property in Lake Charles.
LACC is a joint venture between Axiall Corp., based in Atlanta, Georgia, and Lotte Chemical Corp., of South Korea. Both companies are recognized in the chemistry sector for their cutting-edge and ethical approach to operations.
When the LACC plant begins operations in late 2018, it will produce one million metric tons of ethylene per year. Upon completion of the MEG plant, Lotte plans to export more than 600 kilotons per year to customers abroad. The projects are a combined $3 bn investment.
According to Louisiana Economic Development (LED) the projects will create 215 new direct jobs, with the ethane cracker producing 135 new direct jobs with an average annual salary of $75,500, plus benefits. The MEG facility is expected to produce 80 new direct jobs with an average annual salary of $87,000, plus benefits.
In addition, Axiall will retain 1,600 existing workers in the Lake Charles area, and the company estimates 2,000 construction jobs will be created at peak building activity for the new plants.