LA: Castleton Commodities Announces $1.2B, 340-Job Methanol Project
13 Oct, 2014
Gov. Bobby Jindal and CEO William C. Reed II of Castleton Commodities International LLC announced the company will make a $1.2 billion capital investment to develop a new methanol manufacturing plant along the Mississippi River in Plaquemines Parish, south of New Orleans. The project will create 50 new direct jobs with an average annual salary of approximately $72,000, plus benefits. In addition, Louisiana Economic Development estimates the project will result in 291 indirect jobs, for a total of more than 340 jobs in the Southeast Region of the state.
CCI anticipates beginning construction in 2016, with an estimated two-year build-out leading to completion of the methanol manufacturing plant in the Braithwaite area of Plaquemine Parish. During development of the plant, the project will create an estimated 1,000 construction jobs.
Gov. Jindal said, “Having made economic development one of our top priorities in Louisiana, we are proud to see record industrial investment and job creation rise up across our state – from Sasol, Cheniere Energy and Benteler to Dow, Nucor, CF Industries, Cornerstone Chemical and Dyno Nobel. These and similar industrial projects are bringing tens of billions of dollars in new investment to our state, because Louisiana offers a business climate, ports, pipelines, river terminals and a skilled workforce that are second to none in the world. We’re proud that CCI is now joining the impressive list of important global investors who are choosing to invest their capital and create the jobs of the future right here in Louisiana. Generations of Louisiana families will benefit from these historic investments we’re attracting to our state.”
In Louisiana, CCI will develop the methanol manufacturing plant at the 387-acre former AMAX Nickel site on the east bank of the Mississippi River in north Plaquemines Parish. CCI’s Louisiana plant will produce an estimated 5,000 metric tons of methanol per day, using natural gas as the key feedstock for production.
“CCI is excited to have our methanol project in Plaquemines Parish, Louisiana,” said Reed, the CCI chief executive. “Louisiana has a great workforce, strong business climate and robust energy infrastructure. The project location situated along the Mississippi River near New Orleans makes the site ideal for use in multiple projects. The proximity to a major waterway, deepwater ports, access to natural gas pipelines, truck and rail – in addition to an efficient and expeditious permitting process offered by Louisiana – were major deciding factors in the selection of Plaquemines Parish for the project.”
LED began working with CCI on a potential project in September 2013. To secure the project, the State of Louisiana offered the company a competitive incentive package that includes the comprehensive workforce solutions of LED FastStart®, the nation’s No. 1 state workforce development program. CCI also is expected to utilize the state’s Quality Jobs and Industrial Tax Exemption programs.
“A huge thank you to Governor Bobby Jindal and Secretary of Economic Development Stephen Moret for their efforts to bring this great economic development project to Plaquemines Parish as we continue to rebuild,” Plaquemines Parish President Billy Nungesser said. “This is another exceptional asset for Plaquemines and the entire state of Louisiana.”
“Greater New Orleans Inc. is pleased to welcome CCI to the region,” said President and CEO Michael Hecht of GNO Inc. “CCI’s decision to invest in a methanol manufacturing facility underscores that Louisiana’s combination of logistics, business climate and focus on international trade make it a top location for industrial projects.”
About Castleton Commodities International LLC
CCI is a global commodities merchant with an integrated set of operations consisting of physical and financial commodities trading and the ownership, operation and development of commodities-related upstream and infrastructure assets. The company markets a broad range of physical commodities, including natural gas, natural gas liquids, refined products, crude oil, fuel oil, freight, petrochemicals, electric power and coal and financial instruments related to commodities. CCI is headquartered in Stamford, Connecticut, with offices in Houston and Denver, as well as foreign affiliate offices in Calgary, Canada; Geneva, Switzerland; Shanghai, China; Singapore; and Uruguay. For more information, visit CCI.com.