Cheaper feedstocks and convenient access to water and rail are largely responsible for a burgeoning plastics market in the Baton Rouge metro area. Much of the demand will come from the auto and appliance markets, as new technologies increasingly make the product, in its myriad forms, more attractive to buyers.
It’s not strictly a local phenomenon, though. Rising U.S. energy production is providing vast amounts of affordable feedstock for PVC and polyethylene plastic resin production, and producers worldwide are taking notice. The demand is there as well—global demand for petrochemical feedstock is forecast to rise to nearly 18 million barrels per day by 2050.
For these reasons, energy companies are investing billions of dollars in the petrochemical sector, with the heaviest concentrations along the Gulf Coast. American Fuel and Petrochemical Manufacturers members have said they plan to build at least 11 new ethylene plants in the region over a four-year span that began in 2018. Those plants are expected to increase polyethylene capacity by more than 30%.
The increase in petrochemical production and resulting boom in export traffic will likely put a strain on local ports. To stay ahead of the game, the Port of Greater Baton Rouge pioneered its new container-on-barge service three years ago, where empty containers are barged from Memphis to Baton Rouge to be loaded with resin, then continued downriver to New Orleans for international transport. Read the full story about the plastics boom from the latest edition of Business Report.
