Formosa expects faster ok for U.S. petchem plant under new EPA chief (updated)

Formosa Chemicals and Fibre

01/03/2017 09:09

* Formosa sees fewer obstacles with new EPA chief 
    * Expects to get air permit in 2018 
    * Sees production to start in 2021, one year earlier 
 
 (Adds comments, details, background) 
    By Faith Hung 
    TAIPEI, March 1 (Reuters) - Formosa Petrochemical Corp. 
 6505.TW  expects faster approval for a planned $9.4 billion 
petrochemical plant in the U.S. state of Louisiana under the 
administration of President Donald Trump, the company's chairman 
said on Wednesday. 
    The U.S. Environmental Protection Agency (EPA) is likely to 
roll back some of its regulations after the appointment as head 
last month of Scott Pruitt, who sued the agency multiple times 
as Oklahoma state attorney general.  urn:newsml:reuters.com:*:nL8N1G64V8  
    The company should benefit from less stringent environmental 
regulations under the Trump administration, Formosa 
Petrochemical Chairman Chen Bao-lang said. A subsidiary of 
Formosa's parent company admitted to massive pollution in 
Vietnam last year.  
    "We are more optimistic about the investment," Chen told 
Reuters in an interview in the group's headquarters in Taipei. 
"At least the obstacles will be fewer... We're aiming to get an 
air permit in August 2018." 
    Formosa Petrochemical is part of Taiwanese conglomerate 
Formosa Plastics Group, which has production facilities across 
Taiwan, China, the United States and Vietnam.  
    Another Formosa subsidiary, Formosa Ha Tinh Steel, paid $500 
million in damages in Vietnam after it admitted last year that 
it polluted more than 200 km (125 miles) of coastline in April, 
killing more than 100 tonnes of fish and devastating the 
environment, jobs and economies of four provinces.  urn:newsml:reuters.com:*:nL4N1FG3HN 
     
    PRODUCTION TO START ONE YEAR EARLIER 
    The petrochemical plant will be located in Louisiana's St. 
James Parish. The group first submitted its application to the 
Louisiana state government in September 2015.     
    "Trump has said his priority is the U.S. economy first, and 
then environmental protection," said the chairman, who is also 
an executive member of the group's board. "So far everything is 
running smoothly."  
    Formosa is now hoping to start production in 2021, one year 
ahead of schedule, after getting the permit, he said.  
    Formosa Petrochemical is leading the project along with 
another member of the group, Formosa Chemicals & Fibre Corp. 
 1326.TW .  
    The first phase of the project includes an ethane cracker 
with an annual capacity of 1.2 million metric tonnes and 600,000 
metric tonnes of propylene. In the second phase, slated for 
construction by March 2025, it will build another ethylene plant 
with annual capacity of 1.2 million tonnes, Chen said.  
    The group is also expanding its U.S. production facilities 
in Texas with a $5 billion investment to increase its output of 
ethylene glycol, scheduled for completion in 2018. 
     
 
 (Reporting by Faith Hung; Editing by Richard Pullin and 
Christian Schmollinger) 
 ((faith.hung@thomsonreuters.com; 8862 2500 4893; Reuters 
Messaging: faith.hung.thomsonreuters.com@thomsonreuters.net)) 
 
Keywords: FPCC INVESTMENT/