10/12 Industry Report [Spring 2023]

LINKS The WEAKEST

39 Surge protection

South Louisiana maintenance turnarounds could max out the labor force when owners pull the trigger this year.

42 The Amazon effect

How the e-commerce tech company is changing customer expectations in the industrial supply chain.

CLOSING NOTES

50 The boom at a glance

Our maps of the projects driving industrial growth.

54 The Toughest Challenge

Shell Norco site manager Tammy Little on her leadership epiphany

SPECIAL

26 Executive Outlook

We invited industry and construction leaders to share their organizations’ perspectives on the challenges and opportunities they anticipate in 2023 and the lessons they have learned in the past year.

45 Leaders of Industry

10/12 Industry Report shines a light on regional

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Volume 8 - Number 1

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A new infusion of cash will whittle away at infrastructure needs critical to industry. But the list remains lengthy.

Infrastructure’s dire implications

It is by no means a new problem. Louisiana’s infrastructure “scorecard” consistently has ranked low for years. But as recent as 2022, the state continued to receive low national marks on its infrastructure—a D+ the last time around—based upon data collected by a team of more than 50 civil engineers who studied 11 major components of the state’s infrastructure for more than 18 months.

At last tally, the state has some 1,634 bridges and more than 3,411 miles of highway in poor condition, and commute times have increased by 9.3% on average since 2011.

That has dire implications for the industrial sector along the 10/12 corridor.

Of course, roads and bridges are just one piece of the infrastructure puzzle. Waterways, ports, rail and power each have their “weak links” in need of attention. Fortunately, progress is being made, with hope coming from the promise of public-private partnerships, new state money and an influx of cash from the $550 billion Infrastructure Investment and Jobs Act. Our cover story in this issue details the highpriority needs for industry, beginning on page 18.

CCS PRIMACY PUSH

The drumbeat for state regulatory primacy over Class 6 permits for carbon capture and sequestration, or CCS, wells is growing decidedly louder. The reason is simple: There have been no permits issued by the EPA to date for wells in Louisiana.

In January, Gov. John Bel Edwards criticized the federal agency for moving too slowly to allow states to permit and oversee carbon-reduction projects, which has slowed millions of dollars in investments designed to tackle greenhouse gas reduction.

Louisiana’s Department of Nat-

ural Resources feels it can significantly speed up the permitting of CCS projects if allowed to handle the process, and subsequently free up numerous projects with multimillion-dollar price tags.

In October, CF Industries entered into the largest-of-its-kind commercial agreement with ExxonMobil to capture and permanently store up to 2 million metric tons of carbon emissions annually from its manufacturing complex in Donaldsonville. The plant is investing $200 million to build a carbon dehydration and compression unit, which ExxonMobil will then transport and permanently store in secure geologic storage it owns in Vermilion Parish.

To get it there, ExxonMobil signed an agreement with EnLink Midstream to use EnLink’s transportation network. Many of

8,000 industrial workers in the Baton Rouge area alone, largely due to several impending capital projects in the chemicals and renewables sector.

David Helveston, president and CEO of Associated Builders and Contractors’ Pelican Chapter in Baton Rouge, says many of his members are already at full employment, and a presumed influx of work will make it difficult for them to find sufficient qualified workers.

Adding to the problem is a lack of workers at a national scale. The construction industry will need to attract an estimated 546,000 additional workers on top of the normal pace of hiring in 2023 to meet the demand for labor, according to ABC’s national office.

There is a silver lining: The surge will likely benefit the Louisiana economy, meaning the industrial work could help the state ride out any impending national recession. In fact, Scott expects the economy to grow as most states see declines. Get details on page 37.

AN EVOLVING APPROACH TO CHANGE

EnLink’s pipeline are duplicative, which means the company can use its existing network for carbon transport. The actual conversion process is not terribly complicated and will be consistent with how EnLink already operates. We have the story beginning on page 28.

PREPPING FOR THE SURGE

Twin surges in maintenance turnaround activity this spring and fall, combined with a growing number of capital projects about to launch, could put a significant strain on manpower along the 10/12 corridor in 2023 and 2024.

Baton Rouge economist Loren Scott expects a spike of some

It seems like a simple notion. The intention of “change management” is to prepare, equip and support employees for change. But ExxonMobil’s corporate change management officer, Julie Heinz, says it’s a pointless endeavor if you can’t show them that the “future state” will be better than the “current state.”

She insists it doesn’t have to be a confusing or painful process. She guides employees through the rigors of change by providing understanding and support. ExxonMobil is a bit of a leader in the change management space.

As a corporation, they’ve found that change management is a competency that everyone needs to have the resilience and capacity to innovate in an effective manner. Read more about the company’s approach on page 32.

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LAUNCH

Cybersecurity partners: LSU and Louisiana ports

THE FIVE PARTNER PORTS

LSU and six major Louisiana ports, including the Port of Greater Baton Rouge, plan to work together to develop talent, perform research and promote business development related to port cybersecurity.

The effort counters the ever-present risk of cyberattacks to critical infrastructure while supporting one of LSU President William Tate’s five top research and scholarship priorities for the state’s flagship university. Tate has said he wants to draw on LSU’s early history as a military school to produce “cyber soldiers” to counter digital threats.

Jay Hardman, executive director of the Port of Greater Baton Rouge, has described the potential for cyberattacks as a “constantly evolving threat.” A recent Jones Walker report found that despite 90% of port and terminal respondents reporting preparedness,

74% indicated that their systems or data had been the target of an attempted or successful breach within the past year.

The agreement between LSU and its port partners outlines opportunities for students and faculty to work with the ports to

solve ongoing and emerging cyber challenges. It includes the potential development of cybersecurity testbeds, which are controllable cyber environments for experiments, and joint research to protect port systems as well as broadened collaboration with state and federal security and law enforcement agencies. Primarily, the partnership unites university and port assets to support homegrown cyber talent development for Louisiana.

“Like our students and research expertise, Louisiana’s port system impacts every corner of the state and has national and global reach,” said LSU President William F. Tate IV. “The Scholarship First Agenda elevates domains that meet citizens’ most pressing needs and define Louisiana’s role in the world. These areas: agriculture, biomedicine, coast, defense— including cybersecurity—and energy all converge in Louisiana’s ports.”

Last year, National Security Agency, or NSA, designated LSU as a Center of Academic Excellence in Cyber Operations, or CAE-CO, positioning it as one of the most technical cybersecurity schools in the country.

1. Port Fourchon on the Gulf of Mexico

2. Port of Greater Baton Rouge

3. Port of New Orleans

4. Port of South Louisiana

5. St. Bernard Port

LSU President William F. Tate IV met with Louisiana port leaders and key agencies to announce the historic agreement.

EDDIE PEREZ, LSU

• Louisiana ports carry one-fourth of all waterborne commerce in the United States.

• Port Fourchon services nearly 100 percent of the Gulf of Mexico’s deepwater energy production and secures nearly one-sixth of the country’s oil supply.

• Statewide, one in every five jobs are reliant on Louisiana’s ports.

QUICK READS

GROWING DANOS

In March, Louisiana-based energy services company Danos finalized the acquisition of Wood’s offshore labor supply Gulf of Mexico operations. This is the Gray-based firm’s fourth acquisition since 2014. Its 2,700 employees serve nearly 175 customers across 21 states and the Gulf of Mexico. Read more about the company’s plans in our interview with Paul Danos on page 15.

INDUSTRIAL STRENGTH

In April, Entergy announced that it had signed an agreement with global offshore wind company RWE to jointly evaluate the delivery of offshore wind energy to industrial customers in Texas and Louisiana. RWE and Entergy have agreed to assess key areas to define an optimal route-to-market including: market demand for carbon-free energy for customers of Entergy Louisiana, Entergy New Orleans and Entergy Texas; resource economics; transmission analysis to ensure reliability; economic impacts extending to direct and indirect job creation; and curricula to prepare the workforce of the future.

PLUG IT UP

Issue

BY THE NUMBERS

The amount CF Industries agreed to pay Incitec Pivot Limited to acquire its ammonia production complex in Waggaman. The facility has a capacity of 880,000 tons of ammonia annually.

Date: Spring 2023 Ad proof #1

More than 100 abandoned oil wells, which can leak chemicals and threaten the environmental health of an area, have been plugged in Louisiana in recent months using federal funding, Gov. John Bel Edwards announced. There are more than 4,500 orphaned wells in Louisiana.

SIANA

THEY SAID IT

BY THE NUMBERS

THE BIG SHIFT: In Louisiana, natural gas production jumps over oil

THERE’S LITTLE DOUBT that Louisiana is now primarily a natural gas, not oil, producer, according to speakers at the Louisiana Oil & Gas Association’s annual meeting earlier this spring. The proliferation of wells in the Haynesville Shale play, prompted by the growing need for natural gas by LNG export facilities, is the reason.

Speaking at the Lake Charles event, Tom Harris, secretary of the Louisiana Department of Natural Resources, says the Office of Conservation issued 807 drilling permits in 2022, an increase of 44% over 2021. And the number continued to accelerate throughout the year. “This marks the first time since 2014 the state has issued more than 800 permits,” Harris says. “It’s certainly the

most encouraging news I’ve been able to share in some time.”

In 2022, Louisiana produced more than 3.7 trillion cubic feet of natural gas, the highest volume since 1975 and double what was produced six years. Harris says recent global events, such as the Russian invasion of Ukraine, have served as a reminder that oil and gas “remains the lifeblood of the global economy, despite advancements in renewables,” he adds. “There’s nothing out there right now that’s ready to take its place, and that’s lead to an increase in oil and gas exploration here in Louisiana.”

Nick Dell’Osso, president & CEO of Chesapeake Energy Corp. in Oklahoma City, told attendees that the close proximity of Haynesville Shale to

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“Even though unemployment rates are low in Louisiana and Baton Rouge, there are still workers getting on planes to go to Texas for work. We think there’s an opportunity to bring those workers home.”

ExxonMobil Baton Rouge Refinery Manager Dave Oldreive, during the 2023 Louisiana Energy Outlook sponsored by 10/12 Industry Report and Baton Rouge Business Report

Total number of alert sirens in Lake Charles’ Community Awareness and Emergency Response, or CAER, system. More than half no longer work in the wake of Hurricane Laura, and failed to alert the City of Westlake to a chlorine leak at BioLab in March.

an increasing number of LNG export facilities prompted his company to invest heavily in the play. He says Chesapeake is uniquely positioned to meet growing LNG demand in southwest Louisiana. “I couldn’t be more excited about our strategy and future as a company in an industry that is so fundamentally important to the geopolitical and economic landscape of the world,” Dell’Osso says. “We continue to grow our position and deliver at a level at Hayneville that no one could have imagined five or six years ago.”

He predicts that by 2025 a fundamental step change will occur in demand for natural gas. “I expect 6 percent growth in demand for a commodity that historically doesn’t see growth of that magnitude,” he adds. “It’s a huge number.”

DNR’s Harris also briefed attendees on the status of state Carbon Capture & Sequestration initiatives, adding that the growing backlog of permits for Class 6 sequestration wells is hindering investment. Nationally, the EPA has issued only six Class 6 permits in six years’ time, none of which are in Louisiana. “That’s not a time frame where

businesses can make final investment decisions with any confidence,” he adds. “Companies deserve a faster turnaround.”

Harris hopes that DNR will soon be given regulatory primacy, which could help free up the backlog. “We submitted that application in 2021 and we’re still waiting on word from the EPA,” he adds. “I can tell you that it’s definitely high on the governor’s priority list. State agencies will be better able to streamline processes and get permit applications turned around quickly.”

Harris says once that happens Louisiana will likely become a regional leader in CCS given its existing pipeline infrastructure, petrochemicals industry concentration and geological storage locations. “It seems like a custom built opportunity with immediately recognizable benefits,” he adds. “Over the past several years, we’ve seen stepped up interest in the concept of CCS, with companies making real investment decisions toward turning carbon management into reality. Market forces and policies are driving the industrial sector to do something with waste carbon.”

—Sam Barnes

SAM BARNES

Louisiana Department of Natural Resources Secretary Tom Harris

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of CEO Paul Danos winding path The

Paul Danos took a bit of a winding path to his role as CEO of Danos in Gray, Louisiana. That’s because his father and uncle had created some very specific rules to follow should he or his brothers, representing the third generation, choose to work for the company.

Rule No. 1? “We had to work somewhere else first,” Danos says.

So in the years following his graduation from LSU, he worked for Arthur Andersen in Houston, then later for a pipeline company. While there, he gained some valuable exposure to the energy industry.

After earning his MBA at Stanford University in 2005, he returned to Danos as a project manager in the construction division. “I then had to abide by another rule: I could only hold a job that I was qualified to fill,” he adds. “It couldn’t be some ‘made up’ position.”

He worked his way up from there, serving as executive vice president from 2010 to 2017, then co-CEO over strategic planning, business development and the production operations service line from 2017 to 2020.

Today, Danos leads the vision and strategy development and provides leadership to the other executives, who in turn lead strategy and operational execution.

Apart from work, he serves as the chairman of the National Oceanic Industries Association, and recently served as president and board member of the South Central Industrial Association.

Have you come to appreciate those rules?

I learned the value of hard work. I worked part-time in school shoveling horse manure,

working in our Leeville fabrication shop, doing pipeline work in Fourchon, and working on a lift boat in Venezuela. I came to appreciate what our people do in the field. Those manhours are executed by some wonderful people. Having a personal relationship with them and understanding the value of what they do … I can’t underestimate the value of that.

Having that appreciation helps me make better decisions. I realize the impact that every decision will have on the front-line crews. And when people know that part of our story that we weren’t just handed a job in the company it gives us some credibility and an ability to connect with our workers.

What’s most challenging about your current position?

Running a business is not just about numbers and profit. It’s about the people. We have 2,500 employees and most of them have a family to support. Having grown up in this business, I know a lot of them personally. I feel a sense of weight and responsibility because of that. When the market collapsed in 2020, I made a point every day to find someone that we had to lay off and just talk to them. That way it stayed real and personal.

Preparing for the future of oil and gas is another challenge. We’re bullish in oil and gas because we know the world will still need it for decades to come, but we’re also excited about the transition to renewables. We’re looking into solar and opportunities for wind and doing work around coastal restoration.

Still, we believe that there are opportunities to continue providing low-cost, clean energy

from fossil fuels for a long time. A focus on technology that will allow us to do it in a low-carbon way.

What do you find most rewarding?

We’re in the people business. It’s part of who we are. What’s most rewarding to me is when I have an opportunity to engage with everyone, from the management team down to the front line folks.

I can’t tell you how often I hear people thank us for operating a family-owned, private business in a way that encourages growth and professionalism. We’re 76 years old, and there’s never been a time in our history when we’ve been more committed to being a family-run business.

But it’s also a challenge. Family businesses are great when they’re run correctly. Otherwise, they can be extremely dysfunctional.

What are your biggest concerns?

I’m concerned about the current administration’s view of oil and gas. There’s no quick flipping of a switch that will move us from oil and gas to renewables in a way that is affordable and reasonable, and that will meet our energy needs. Putting pressure on our industry and overregulating it in an attempt to get us to move too fast is going to create a catastrophe.

We need to agree to a transition that is smooth, feasible and paced correctly.

Passions outside of work?

My faith and my church are important to me. I also have four daughters, so my girls and my family are a huge part of my life. Apart from that, I’ve got a few acres around my house, a tractor and some bees, so I spend a lot of my time with a chain saw in my hand or messing around with my bees. That’s what keeps me sane and grounded.

PERFORMANCE POLYMERS PERFORMANCE POLYMERS

START IT UP

This spring, ExxonMobil celebrated the successful startup of its new polypropylene production unit at the Polyolefins Plant in Baton Rouge. The unit increases polypropylene production capacity along the Gulf Coast by 450,000 metric tons per year, meeting growing demand for high-performance, lightweight and durable plastics, particularly for automotive parts that can improve fuel efficiency and reduce vehicle emissions. Polypropylene, a polymer with several applications, is also used to improve the safety and efficiency of everyday products like medical masks and food packaging.

A BIG IMPACT

ExxonMobil maintained its investments in this advantaged project through the COVID pandemic and related economic downturn. The total capital investment was more than $500 million, and the unit start up was according to planned cost and schedule. During construction, the project employed more than 650 workers and with full operational status, requires an additional 65 full-time ExxonMobil jobs.

THEY SAID IT

“With the startup of this new production unit, we are well positioned to responsibly meet the growing global demand for these high-performance polymers,” said Karen McKee, president of ExxonMobil Product Solutions. “The ingenuity of our people and our investments in technology enable us to produce high quality products that are essential to daily life.”

THE BIGGER PICTURE

ExxonMobil’s integrated operations in Baton Rouge include a more than 500,000 barrel-per-day refinery, as well as chemical, lubricants, polyolefins and plastics manufacturing. ExxonMobil has more than 5,500 employees and contractors in the Baton Rouge area and its operations account for approximately one in every 10 jobs in the region.

COURTESY EXXONMOBIL

COVER STORY

TheLINKS WEAKEST

BY SAM BARNES

South Louisiana’s confluence of waterways, rail, pipelines and interstates was undoubtedly the reason for industry to locate here. Unfortunately, the “to do” list of infrastructure enhancements needed for the state to remain competitive is problematically long.

The $1 trillion federal infrastructure bill, passed in late 2021, provided a glimmer of hope for some of Louisiana’s backlogged projects, as it came with a promise to funnel billions to states and local governments to upgrade outdated roads, bridges and transit systems. Of particular note was the bill’s intention to repair and

rebuild thoroughfares and bridges, meliorate airports and ports, invest in passenger rail, improve infrastructure resiliency and fortify the power infrastructure.

For Louisiana, it has freed up funding for some long-delayed, long-overdue projects.

Nevertheless, Shawn Wilson, former secretary of the Louisiana Department of Transportation and Development, says getting the most out of any infrastructure funding measure will require strategic alliances among multiple infrastructure modes. “We need to leverage our resources and work together, whether that be industry, the ports, roads, etcetera to create a plan, and we need to be able to

A new infusion of cash will whittle away at infrastructure needs critical to industry. But the list remains lengthy.

fund that plan to remove bottlenecks and maximize efficiencies,” Wilson says.

Unfortunately, the state must play catchup first. As recent as 2022, Louisiana continued to receive low national marks on its infrastructure—a D+ from the American Society of Civil Engineers—based upon data collected by a team of more than 50 civil engineers who studied 11 major components of the state’s infrastructure for more than 18 months.

That has had dire implications for the industrial sector along the 10/12 corridor. “When you look at our 16,000 miles of roads, 12,000 bridges and six Class 1 railroad and airports … our economy is based upon the infrastructure that we have, not the infrastructure that we need,” Wilson says. “We’re faced with a difficult decision: whether to maintain what we have today or invest in the next five to 10 years in a new mobility solution. It’s a

problem brought about by generational inaction.”

Of course, roads and bridges are just one piece of the infrastructure puzzle. Waterways, ports, rail and power each have their “weak links” in need of attention.

SORE SPOTS: BATON ROUGE AND LAKE CHARLES

There are perhaps no bigger “weak links” in the state than the I-10 bridges in Lake Charles and Baton Rouge. They’re well-known daily sources of congestion, primarily because they were built at a time when traffic counts were

significantly lower.

George Swift, president and CEO of The Southwest Louisiana Economic Development Alliance, says it’s no secret that the I-10 bridge replacement in Lake Charles has been a top priority for years. The bridge was initially constructed in 1952 with a predicted 50-year life span and traffic load of 37,000 crossings per day. Today, the average daily crossings exceed 80,000.

“Everyone in industry is concerned about the condition of the bridge,” Swift says. “Even though it’s structurally sound, the bridge

is unsafe because of steep inclines, no turnoff lanes and no lights. That’s our number one project, and I’ll put that up against any in the state.”

Highlighting its importance at the federal level, U.S. Secretary of Transportation Pete Buttigieg visited the site in February to announce the awarding of a $150 million grant to help fund the replacement of the outdated bridge. In total, about $800 million has been allocated for the bridge so far.

Unfortunately, the costs continue to escalate.

“The cost estimate was originally $800 million,” Swift says. “Now, it’s $1.5 billion. We’re hoping to get this executed this year, because the longer we wait the more it will cost.”

The public-private partnership (P3) project will span from the I-10/I-210 west interchange to the east side of the Ryan Street exit ramp, as well as improve LA 378 from I-10 to Sulphur Avenue

“We’ve had billions of dollars of investment in the LNG facilities in Cameron Parish, but we’re relying on a ferry to cross the ship channel.”

GEORGE SWIFT, president and CEO

The Southwest Louisiana Economic Development Alliance

‘ACE IN THE HOLE’: In December, Port NOLA received $800 million in funding from Ports America and Mediterranean Shipping Company’s investment arm Terminal Investment Limited. The $1.8 billion facility is slated to begin construction in 2025, with berths opening in 2028.

in Lake Charles. The state is expected to select a developer for the project by fourth quarter 2023, with construction slated for 2025.

Apart from the bridge, there are other weak links in need of attention, Swift says. “We’ve had billions of dollars of investment in the LNG facilities in Cameron Parish, but we’re relying on a ferry to cross the ship channel,” he adds. “A bridge over the ship channel is what’s needed, but we need to start working on that now, because that could take many years.” He also points to several two-lane feeder roads that need widening to adequately service the industrial market.

No progress has been made on the efforts to date. “It needs to be on our radar,” Swift says, “and it becomes more evident virtually every week.”

Scott Kirkpatrick, executive director for the advocacy group Capitol Region Industry for Sustainable Infrastructure Solutions,

or CRISIS, says while there has been some progress among all three “core” infrastructure needs identified by his group in 2016—a

new $2 billion I-10 bridge south of Baton Rouge, the $72 million widening of I-10 through Baton Rouge and a $1 billion surface road program—the condition of the city’s infrastructure remains severe.

I-10 through Baton Rouge to the industrial corridor has remained a source of congestion and traffic slowdowns for years, significantly impacting the flow of people, goods and services. “Some progress has been made,” Kirkpatrick says. “The widening of I-10 in Ascension has been completed and that was an early win for us. There are some other surface projects—for example, the I-10/ Picou Lane Interchange that’s under way—but we’ll have to wait a while before the full benefits are realized.”

He’s most excited about the

“tremendous momentum” building around the proposed new Mississippi River bridge south of Plaquemines. Currently, the project is in Phase 2 of environmental assessments, and the eventual location of the bridge has been narrowed to three locations, all south of Plaquemine and crossing the river into St. Gabriel.

Kirkpatrick expects a final location to be selected within the next two years. “We think the public-private partner solicitation process will begin in 2023,” he adds. “It’s a long process, but DOTD has indicated the process will be begin this year.”

Ascension Parish hopes to be ready for the bridge when the time comes. Robert Burgess, president of the Ascension Chamber of Commerce, says additional infrastructure will be needed in

“The Bureau of Ocean Energy Management has proposed the first offshore wind lease in the Gulf and the majority of the acreage sits just 30 miles from where the Calcasieu Ship Channel hits the Gulf.”

RICKY SELF, executive director, Port of Lake Charles

“We think the publicprivate partner solicitation process will begin in 2023. It’s a long process, but DOTD has indicated the process will be begin this year.”

SCOTT KIRKPATRICK, executive director

for the advocacy group Capitol Region Industry for Sustainable Infrastructure Solutions, of efforts to fund a new Mississippi River bridge south of Plaquemines

The Infrastructure Hit List

Here’s a look at the top priorities for South Louisiana.

1. I-10 bridge, Lake Charles

In total, about $800 million has been allocated for the bridge. Unfortunately, the costs continue to escalate. Now at a cost of $1.5 billion, the public-private project will span from the I-10/I-210 west interchange to the east side of the Ryan Street exit ramp and will improve LA 378 from I-10 to Sulphur Avenue in Lake Charles.

2. New I-10 bridge south of Baton Rouge

Currently, the project is in Phase 2 of the environmental assessment, with the eventual location of the bridge narrowed down to three locations, all south of Plaquemine and crossing into St. Gabriel. The bridge will primarily service the industrial corridor south of Baton Rouge.

3. I-10 through Baton Rouge to the industrial corridor

The interstate system through Baton Rouge and points south remains a source of congestion and traffic slowdowns, significantly impacting the flow of people, goods and services to the industrial sector.

4. La 3127 Extension, Donaldsonville

The extension of LA 3127 around Donaldsonville along with other planned improvements are critical to supporting future investments.

5. St. Bernard Transportation Corridor

Future elevated expressway to route truck traffic from PortNOLA’s new Louisiana International Terminal to and from the facility. The port received $50 million in capital outlay bill last year from the state.

6. New Orleans-Baton Rouge Intercity Passenger Rail

Like many infrastructure needs in the state, an inter-city passenger rail has long been touted as a vital for future commerce, but little has been accomplished.

Entergy Louisiana has filed a 10-year, $9.6 billion plan – Entergy Future Ready – with the PSC that will replace existing electrical infrastructure with more resilient and durable equipment. Entergy is also applying for grants under the Department of Energy’s Grid Resilience and Innovation Partnerships (GRIP) program.

The port already operates a facility just 23 nautical miles from the Gulf with no air draft restrictions and direct access to the federally maintained deep draft Calcasieu Ship Channel. That’s important, since turbine blades can measure from 350 to 425 feet.

In the oil and gas-dependent Houma/ Thibodaux region, no infrastructure discussion is complete without addressing the completion of the LA 1 Improvement Project and I-49 extension, in the creation of a vital north-south route.

7. Electrical Grid Hardening

8. Port of Lake Charles’ Wind Power Preparations

9. I-49 Extension/LA 1 Improvements

his parish to accommodate the bridge as well as facilitate the construction and operation of a planned RiverPlex MegaPark near Donaldsonville.

An $80 million 8.3-mile, 4-lane highway extending LA 3127 from LA 70 to LA 1 tops the list.

Burgess says it would route freight traffic around Donaldsonville, increase regional connectivity and enhance safety. An additional $22 million LA 1/LA 3127/Energy Transition Parkway Interchange would provide a directional interchange of the three highways, which would benefit the flow of industrial traffic.

They’re still pursuing funding for the initiatives, however. “The proposed LA 3127 Extension project would not only provide access to the planned industrial RiverPlex MegaPark, but also increase regional connectivity to the planned Mississippi River Bridge,” Burgess says.

PORTS PIVOT TO REMAIN COMPETITIVE

Meanwhile, Louisiana’s port directors warn that significant port investments will be needed if they are to remain competitive in an increasingly crowded field.

Jessica Ragusa, deputy director of governmental affairs at Port NOLA, says the port’s new $1.8 billion Louisiana International Terminal is their “ace in the hole,” as it will enable the port to accept Panamex and New Panamax mega-vessels and be capable of

handling 2 million twenty-foot equivalent units (TEUs) annually.

“We’ve already got the 50-foot draft we need thanks to the Corps of Engineers, but if we’re not ready with the terminal we’ll get left out of the game,” Ragusa says. “That’s our top priority right now.”

In December, the facility received $800 million in funding from Ports America and Mediterranean Shipping Company’s investment arm Terminal Investment Limited. The $1.8 billion facility is slated to being construction in 2025 and the berths open in 2028.

“We’ll be able to handle the largest vessel capacities. That’s the need. We’re seeing these vessels starting to come into the market and if we don’t have the facilities to accept them then we’ll no longer be in the container business, and neither will the state of Louisiana.”

PortNOLA is also raising funds for the St. Bernard Transportation Corridor, an elevated expressway that will connect the terminal to major traffic routes.

The port received $50 million from the state’s capital outlay bill last year for the corridor, but Ragusa says that they’ll need to build a comprehensive grant funding strategy as well as pursue other funding strategies such as a toll road.

“The timing is very complex,” she adds. “For example, we might receive a grant but not be able to

“Instead of taking weeks to get the system back up after a major hurricane or other event, we’ll be able to do it in days. That’s the objective of a more resilient grid.”

PHILLIP MAY, president and CEO,

Entergy Louisiana

CHERYL GERBER

GRID DOWN: Downed power lines in Waggaman after Hurricane Ida in August 2021.

spend it until 2026, so we’re developing a grant strategy to take full advantage of the opportunities.”

The Port of Lake Charles has its own plans to capitalize on a rapidly changing market, albeit in a decidedly different way. Ricky Self, port executive director, says his biggest future need will be enhancing port facilities to prepare for a burgeoning offshore wind market.

The port’s Industrial Canal site “checks all of the boxes,” Self says. “The Bureau of Ocean Energy Management has proposed the first offshore wind lease in the Gulf,” he adds, “and the majority of the acreage sits just 30 miles from where the Calcasieu Ship Channel hits the Gulf.”

The port’s Industrial Canal site is situated just 23 nautical miles

from the Gulf with no air draft restrictions and direct access to the federally maintained deep draft Calcasieu Ship Channel. That’s important, since turbine blades can reach anywhere from 350 to 425 feet long. “We have about 50 acres and more than 3,000 linear feet of shoreline available,” he adds.

Before that can happen, the port will need to perform significant upgrades the site, as well as extend its port-owned rail system at a cost of about $135 million.

The funding for the effort remains in limbo—the port applied for a Port Infrastructure Development Program grant to fund the study, but the application was denied.

“We feel that if we apply for the actual construction of the facility, it could be successful,”

Self says. “We anticipate that once the operator, port and state are at the table, that will go a long way toward getting this funded.”

SENDING I-49 SOUTH

In the oil and gas-dependent Houma/Thibodaux region, no infrastructure funding initiative is satisfactory unless it addresses the I-49 extension and completion of the LA 1 Improvement Project. That’s because the area badly needs a north-south corridor access route, not only for transporting goods and services but as an evacuation route.

Last fall, state and local officials officially broke ground on a key piece of the I-49 Lafayette Connector project, giving the area some hope that the interstate could be completed in the next

several years. The $136-million Ambassador Caffery Parkway interchange will include elevated frontage roads, U-turn movements and widening the reconstruction of Ambassador Caffery to account for the new interchange.

The connector is a future 5.5mile segment of highway that will extend I-49 from I-10 to the Lafayette Regional Airport. The connector is a key component of I-49 South, which will function as a critical hurricane evacuation route, complete a major energy and trade corridor to the nation and enhance safety by providing new interstate connectivity within the Lafayette region and to New Orleans.

Finishing the elevated sections of the La. 1 Improvement

INTERSTATE GRIDLOCK: I-10 through Baton Rouge to the industrial corridor has remained a source of congestion and traffic slowdowns for years, significantly impacting the flow of people, goods and services.

Project is equally important, as it would provide a critical route to Port Fourchon and the Louisiana Offshore Oil Loop (LOOP). There’s been progress there as well, as state leaders recently broke ground on Phase II of the La. 1 construction program, which will elevate 8.3 miles of the highway from Leeville to Golden Meadow. Once complete, there will be 19.3 miles of elevated expressway between Golden Meadow and Port Fourchon.

Unfortunately, the oil and gas industry in the region won’t benefit from the La. 1 project until the highway spans are complete. In the meantime, should the highway be incapacitated by a storm, the impact on the nation’s economy could be catastrophic.

POWER RESILIENCE

Electrical infrastructure resiliency in Louisiana has been top of mind ever since the storm-battered years of 2020-21. Without question, the task of restoring power in the wake of multiple catastrophic hurricanes was an unprecedented challenge for Entergy. Hurricane Ida alone damaged a

record-breaking 30,000 power poles.

After making landfall near Fourchon, Ida traveled northward, wreaking devastation in countless communities along the way and significantly impacting the New Orleans and Baton Rouge metro areas. “

There were nearly 1 million customers without power,” says Phillip May, president and CEO of Entergy Louisiana. “Because of its path, Ida affected a very large number of customers.”

May says while the electrical infrastructure built since Katrina “weathered the recent storms quite well, we’re seeing an acceleration of storm severity and frequency … and that’s cause for concern.”

As such, last year Entergy Louisiana filed an “Entergy Future Ready” resiliency plan with the state Public Service Commission. The 10-year, $9.6 billion plan aims to replace electrical infrastructure across Louisiana with a newer, more resilient electrical grid. Entergy is also applying for grants under the Department of Energy’s Grid Resilience and

Innovation Partnerships (GRIP) Program.

If given the green light, the project will touch more than 9,600 distribution and transmission projects across the state. “We have 1 million poles south of I-10, so the program will take a while,” May says. “It doesn’t mean that the power will never go out, but we’ll have the ability to quickly respond and get the power back on, particularly to our critical customers.

“Instead of taking weeks to get the system back up after a major hurricane or other event, we’ll be able to do it in days. That’s the objective of a more resilient grid.”

The first phase of the plan will call for $5 billion in resiliency enhancements over five years. May hopes to have a decision from the PSC by end of this year. “That would kick off the initial phase of the plan the first part of 2024,” he adds.

Entergy collaborated with utility providers in Florida for assistance in developing the plan. “We looked at all hurricane data over the last 50-plus years, including every transmission structure, pole,

line or device and put together a model. We then had hurricanes track over the system to determine what damage we could expect on that system.

“We also executed accelerated storm scenarios. That’s how we prioritized and developed those 9,600 distribution and transmission projects.”

TICKET TO RIDE

Like many of the state’s infrastructure needs, a proposed intercity passenger rail route between New Orleans and Baton Rouge has long been touted as vital for future commerce, but plagued by multiple stops and starts.

However, the Baton Rouge Area Chamber, GNO Inc., and the SOLA Super Region Committee are calling the recent approval of the Canadian Pacific Railway and Kansas City Southern merger the “most important step forward” for creating the long-proposed passenger rail link.

“The Surface Transportation Board decision specifically cited that CPKC has committed to supporting Amtrak’s plan for

FINDING FUNDING: The federal Infrastructure Investment and Jobs Act, passed in 2021, supplied funding for Amtrak to further its 15year corridor vision plan, including the proposed passenger rail between the Baton Rouge and New Orleans.

SHUTTERSTOCK

expanded passenger rail service, and that this helped win Amtrak’s endorsement of the merger,” the joint statement says.

e groups also pointed to Amtrak’s national statement on the announcement, which said that CP “has committed to support Amtrak’s e orts to work with the Southern Rail Commission, states and other stakeholders for … establishing Amtrak service between New Orleans and Baton Rouge.”

At the recent Southern Rail Commission quarterly meeting, representatives from the state’s transportation department updated stakeholders about federal funds the state is pursuing.

e state has hired consultants to begin the federally required environmental studies for the route and has also submitted a grant application for funding to help replace the Bonnet Carre bridge.

e project, which could top $260 million, already has a few funding sources. e federal

Infrastructure Investment and Jobs Act, passed in 2021, supplied funding for Amtrak to further its 15-year corridor vision plan, including the proposed passenger rail between the Baton Rouge and New Orleans.

Last year, U.S. Rep. Garret Graves’ o ce announced that the Baton Rouge-to-New Orleans rail project would receive $20 million in federal funding for real estate acquisition, design and construction of the Baton Rouge and Gonzalez train stations.

e $20 million RAISE grant represents only a portion of the $36.95 million Baton Rouge and Gonzales have jointly sought in federal funding for the stations. Including local matches, the total cost for the two stations would be $46.6 million.

e Legislature last year also approved $12.5 million in unspent federal American Rescue Plan dollars to provide service between Baton Rouge and Sorrento.

MUST-HAVE: In the oil and gas-dependent Houma/Thibodaux region, no infrastructure funding initiative is satisfactory unless it addresses the I-49 extension and completion of the LA 1 Improvement Project. That’s because the area badly needs a north-south corridor access route for transporting goods and services.

EXECUTIVE OUTLOOK

We invited industry and construction leaders to share their organizations’ perspectives on the challenges and opportunities they anticipate in 2023 and the lessons they have learned in the past year.

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ANDRE SMITH PRESIDENT Five-S Group

REACHING MILESTONES ARE on the horizon for Five-S Group in 2023 with ten years in business this July. Five-S provides turnkey civil solutions to help our client’s plans become reality. We are the #dirtmafia and have achieved a diversified portfolio of civil site construction services and construction material supply projects. We broke into the petrochemical market following our work at Sempra’s Cameron LNG export facility in Hackberry. Since then, Five-S has supported the development of numerous US LNG Export facilities to supply clean energy around the world. Change is happening in the Gulf South Region. We have been at the forefront of expanding our fleet, portfolio, and our services. With the renewable energy market expanding, Five-S identified and prepared for this change when the petrochemical market was disrupted by the pandemic. We are currently performing a wide range of civil construction capabilities on solar farm infrastructure projects in Texas and Louisiana. We anticipate an unprecedented amount of opportunities to come in 2023. History is being made as many Flood Risk Reduction projects are underway. We have contributed with our own efforts on the Comite Diversion Canal and the West Shore Lake Ponchartrain projects with the U.S. Army Corps of Engineers, excavating and embanking millions of yards of material for these critical infrastructure missions. Supporting both the private and public sectors, Five-S continues its mission of building better people and better projects from the ground up.

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Carefully

MATT ARABIE PRESIDENT

Premiere Corrosion Solutions

CUSTOMERS NEED A CHANGE in the way they are supported moving into 2023 and beyond.

Having served the corrosion solutions industry for the past 15 years, my ultimate goal has been to make my clients job easier by advising them on and providing the best solutions to their corrosion problems. This hasn’t changed today but the face of my customer landscape has and is rapidly changing.

With the baby boomers increasingly leaving the workforce, a new generation of employee is taking over the industrial landscape, and they’re counting on solutions providers to be the subject matter experts.

It’s our responsibility to guide them to the right solution rather than offering a menu of choices.

Knowing and asking the right questions to gain a holistic view of the problem is what customers are looking for moving into the future.

Being a trusted advisor is the new face of solution providers. Premier Corrosion Solutions (PCS) with our strategic group of Principals is armed and ready with the right questions to ask to help solve our clients most difficult corrosion problems.

PCS is the gulf coast’s trusted and preferred corrosion solutions provider.

CONNIE P. FABRÉ PRESIDENT & CEO

Greater Baton Rouge Industry Alliance, Inc.

ALLAN MARTIN

FOUNDER & CEO Rex Industrial

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2023 IS SHAPING UP to be another great year for GBRIA. The year began with enthusiasm for GBRIA’s program of work and our many networking events. Our Annual Meeting in February and Safety Excellence Awards attendance in March were the highest ever and our members and partners are looking forward to more collaboration this year through events such as our Industry Expo in June and others. Demand for industry products is growing in a post-pandemic world despite some major uncertainties from the war in Ukraine, interest rate, supply chain and labor shortage issues. Companies view Louisiana as an ideal place to invest in energy transition and carbon reduction and we are seeing billions upon billions of dollars of investment coming in to build clean energy solutions, advanced manufacturing for new technologies like cleaner batteries for electric cars and chip manufacturing and more. Our partnerships with area educational institutions such as high schools, LCTCS, ABC and the Alliance Safety Council are working hard to recruit and train needed skilled craftspeople. Our latest labor forecast shows that demand will remain high for skills such as welders, scaffold builders, millwrights, pipefitters, engineers and technology professionals of all types. Louisiana’s industrial workforce achieves the highest productivity in the industry and we are proud to help with amazing partnerships that GBRIA and its members have with educators, government, and our community.

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This ad design © Melara Enterprises, LLC. 2023. All rights reserved. Phone 225-928-1700

G. SCOTT HILL PRESIDENT RelaDyne Reliability Services

FOR OVER 50 YEARS, RelaDyne has offered the most diversified and comprehensive portfolio of industrial and sustainable services, equipment, and products to provide ultimate plant and operational efficiency.  Being the largest Shell, Chevron and P66 lubricant distributor and reliability solutions partner provides our customers the ease of obtaining products to meet their lubricant and fuel needs without concern of supply issues.  Our multiple domestic and international hubs provide our teams the ability to cover massive geography for every industrial sector.

Our services are categorized in six areas: product cleaning, system cleaning, equipment rentals, fueling services, embedded technicians, and ESG.  We serve nearly every relevant industry – petrochemical, refining, power generation (including nuclear), hydrogen fuel cell, LNG, steel and metalworking, pulp and paper, manufacturing, marine, oilfield, alternative, fuel, and automotive.

I am excited about our contracted service projects in the Gulf Coast area as our projections are pointing towards record high levels for the next several years in startup and commissioning services along with traditional outage work, plant expansions, and new alternative energy plant developments.  With the Industrial transition to carbon footprint reduction,  RelaDyne’s strategic offering of carbon neutral lubricants along with our Industrial Sustainability Services allow us to provide world class service for every major project in the 10/12 Industry corridor.

THERE IS PLENTY to be optimistic about regarding US Gulf Region industrial activity in 2023. Rex Industrial is fortunate to be in a hotbed of oil, gas, chemical, and renewable projects vital to keeping the world moving. We have seen a strong demand for products and services to start the year. Supply chain constraints have eased but the skilled labor market remains tight.

Looking forward, we expect the general economic slowdown from rising interest rates to have minimal effect on business in the near term; in particular, clients in the Midstream and Downstream Markets have proven to be resilient. If rates stabilize by Q3 we should see an increase in activity at the end of the year and in 2024. More importantly, we want to see WTI in a range between $60bbl and $100bbl.

Regardless of where we are in the business cycle, it is always a good time to be an innovator.  Innovation is the only way to achieve significant reductions in prices, lead-times, and coordination efforts. See some of our innovative products and how we use software to streamline design, engineering, and procurement (D.E.P.) at  www.RexIndustrial.com.

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DAI NGUYEN GENERAL MANAGER Shell Geismar

SHELL HAS A proud and rich history in Louisiana, with more than 100 years partnering with communities throughout the state and along its working coast. Last year, Shell celebrated the 55th Anniversary at its Shell Geismar facility, where Dai Nguyen serves as General Manager. Louisiana is already home to a wide range of Shell activities, from oil and gas exploration and production to pipeline supply and distribution, from refining and chemicals to LNG for transport. But they’re on the verge of a transition to a sustainable future with their Powering Progress strategy.

Though Nguyen is a Louisiana native, he took a very roundabout way to return home. After graduating from Tulane University with a degree in chemical engineering, he has held a myriad of roles around the globe for Shell in his 32 years. Nguyen was excited to return to Louisiana to lead the Geismar site as part of Shell’s strategic plans featuring Louisiana as its epicenter for the future. Although focused on growing Shell’s business in Louisiana, Nguyen is equally committed to growth in his community. Apart from Shell, he is on the board of directors for the Capital Area United Way, the Baton Rouge Area Chamber, Louisiana Chemical Association and The Arts Council of Greater Baton Rouge. He also promotes investing in childhood education.

Carbon Conundrum

BY SAM BARNES

Permitting delays and emerging community battlegrounds are slowing the ‘gold rush’ for capture, usage and storage.

Agrowing number of carbon capture and sequestration projects are at the proverbial starting gate in Louisiana, but the Class 6 permits needed to store the substance remain in limbo.

Adding insult to injury, the state’s efforts to gain regulatory primacy over the permitting have stalled, a full year and half after the Louisiana Department of Natural Resources submitted the request to EPA’s Region 6 headquarters in Dallas.

Giving Louisiana primacy would “most definitely speed the process,” says Patrick Courreges, communi-

cations director at the Louisiana Department of Natural Resources. “We are still waiting for any type of word, whether an approval, denial or even feedback. Last summer, it moved from the regional office to EPA headquarters for review, and that’s where it still sits. We’re not getting any updates or timetables.”

The permitting logjam has delayed billions of dollars in potential CCUS (Carbon Capture, Utilization and Sequestration) investment.

According to EPA’s Region 6, there are currently five companies with pending Class 6 permits at proposed Louisiana sequestration

sites: Oxy Low Carbon Ventures LLC in Allen Parish, Gulf Coast Sequestration in Calcasieu and Cameron parishes, Hackberry Carbon Sequestration LLC in Cameron Parish, Capio Sequestration LLC in Pointe Coupee Parish and CapturePoint Solutions LLC in Rapides Parish.

That’s frustrated Gov. John Bel Edwards, who in January criticized the slow playing of the process in a letter to EPA Administrator Michael Regan.

“More information on the progress of Louisiana’s Class 6 application would help encourage potential CCS operators to make firm investment decisions,”

Edwards says in the letter. “We are now seeing concepts begin to turn into investment decisions, but a recurring question is if and when Louisiana will receive primacy.”

DNR Secretary Tom Harris reiterated frustrations over the process during the Louisiana Oil & Gas Association’s recent annual meeting in Lake Charles. “Nationally, the EPA has issued only six Class 6 permits in six years’ time, none of which are in Louisiana,” Harris says. “That’s not a time frame where businesses can make final investment decisions with any confidence. Companies deserve a faster turnaround.”

Giving LDNR regulatory

primacy could help free up the backlog and catapult Louisiana into a regional CCS leader, Harris says, given the state’s existing pipeline infrastructure, petrochemicals industry concentration and geological storage locations.

“It seems like a custom-built opportunity with immediately recognizable benefits,” Harris adds. “Over the past several years, we’ve seen stepped up interest in the concept of CCS, with companies making real investment decisions toward turning carbon management into reality.”

To date, DNR has received Class 5 permits for injection well tests (often a necessary precursor

to a Class 6 permit) from Louisiana Green Fuels in Caldwell Parish, Capio in Pointe Coupee Parish, Oxy Low Carbon Ventures in Allen and Livingston parishes; Air Products in Livingston and St. John parishes, Shell in St. Helena Parish, CapturePoint in Vernon Parish, River Parish Sequestration in Assumption Parish and Denbury Carbon Solutions in Ascension Parish.

If and when it gains primacy, DNR plans to triple the size of its regulatory staff from three to nine to prepare for the initial rush in applications. “Louisiana is pretty unique, and we have the knowledge of our geology,” he adds. “There are more time efficiencies, too, because we have more people to dedicate to that. Region 6 only has so many people to cover four different states.”

Eric Smith, director of the Tulane Energy Institute in New Orleans, blames politics for the delays. “They’re concerned that states such as Louisiana and Texas will minimize the risk and proceed to do what they want to do,” Smitha adds. “I don’t think that’s likely. We have a pretty good safety record with that kind of thing, and we very rarely have problems with pipelines.

“You’ve got all this money waiting to be spent but no one can spend it because the government won’t get out of the way. My guess is that they’ll slowly turn over primacy to states that are loyal to the administration.”

Concerns over the sequestration piece of the puzzle might be part of the reason for the delays. “The big prize that everyone is after, including the federal government, is drilling these Class 6 wells into saline aquifers deep below the surface, then pumping the carbon into those,” he adds. “They’re virtually everywhere if you can drill deep enough.

“The problem is we don’t have reams of data on that. The concern is that the carbon will perambulate until it finds a fault line or old well and emerges at the surface.”

THE

LOW-HANGING

FRUIT

A cadre of LSU professors

researching CCUS say a “gold rush” is coming, once permits begin getting the green light, fueled by government carbon tax credits. The 2022 changes to Section 45Q of the U.S. IRS code provide up to $85 per ton of carbon permanently stored and $60 per ton of carbon used for enhanced oil recovery or other industrial uses.

“My guess is that it would only cost between $5 to $10 per ton for sequestration at a site, but the credit is about $85 per ton,” says John Flake, professor of chemical engineering. “The gold rush is coming if you have a place to sequester.” What’s more, Louisiana’s existing network of pipelines can be used to transport the carbon to a sequestration site.

But Flake, along with John Pendergast, a professional in residence in the Department of Chemical Engineering, and Dick Hughes, a professional in residence in the Department of Petroleum Engineering, say it’s not all about money. The environmental benefits of carbon capture – particularly in the greater Baton Rouge area –can’t be ignored.

The “low hanging fruit,” they say, is the abundance of large-scale chemical plants that are already removing carbon as part of their processes.

“The production of ethylene oxide and ammonia already requires the removal of carbon dioxide, whereby it’s stripped out of the solution and vented as pure carbo dioxide,” Flake says. “That’s done every day within 50 miles of the LSU campus.”

CF Industries’ Donaldsonville plant, for example, is the world’s largest producer of ammonia. “They have to remove that carbon, and it’s an enormous amount,” Flake says. “That one plant is likely already removing 10 billion kilograms of carbon per year.”

Refineries and power plants, on the other hand, face a much higher barrier to entry. That’s why most of the initial investment will be focused on those plants already stripping the carbon from their processes.

“It might cost a power plant 30 percent of its power production to do that,” Pendergast says. “They’d spend hundreds of millions to

GOING CARBON: C. Blake Phillips, senior manager of carbon solutions at Dallas-based EnLink, says his company’s existing 4,000 miles of natural gas pipelines in Louisiana are already operating at adequate pressures for carbon. ExxonMobil has signed an agreement with EnLink Midstream to use the pipeline company’s transportation network to deliver carbon to permanent geologic storage in Vermilion Parish. Startup for the project is scheduled for early 2025.

billions to capture the carbon, and it would cost them about a third of your power. There has to be an additional incentive there, above the $85 per ton credit.”

As for the sequestration of the carbon, Louisiana has an abundance of geological formations already available. While depleted oil and gas reservoirs could be used, Hughes says, “the problem is that we have a lot of wells at those locations and those are usually potential leak sites. We typically avoid those.”

Most developers are instead seeking saline or brine formations. “Lake Maurepas is an interesting location,” Hughes says. “It has few well penetrations and the geologic environment is relatively flat. It also has high porosity and permeability, which means the amount of carbon you can inject is higher.”

Flake says the utilization of captured carbon as an alternative

to sequestration remains in its infancy. “That’s more research and less application at the moment,” Flake says. “There’s no commercial utilization process at large scale.”

He’s most excited about the potential of carbon as a low-cost fuel source. Flake is researching ways to utilize carbon dioxide as

an alternative fuel in the conversion of ethane to ethylene, which is used in everything from plastic products to clothing to detergents and hand soaps.

“With ethane, you’re already using a fossil fuel (ethane is derived from natural gas), then you have to utilize a lot of energy to convert

it to ethylene,” he adds. “For every kilogram of ethylene you make, you generate about a kilogram of carbon.”

The goal, therefore, should be to capture and utilize carbon as a feedstock. While that currently is an expensive proposition, Flake says there could be other methods of utilization not necessarily derived from an industrial process.

LSU recently received $5 million of a $50 million grant from the U.S. Economic Development Administration grant to research and develop a clean hydrogen cluster in south Louisiana, of which Flake’s department will receive about $3 million for researching carbon utilization.

“The gold rush is coming if you have a place to sequester.”

JOHN

FLAKE, professor of chemical engineering, with John Pendergast, a professional in residence in the Department of Chemical Engineering, and Dick Hughes, a professional in residence in the Department of Petroleum Engineering

Global hydrogen manufacturing company Air Products provides information at an October 2022 meeting to Livingston Parish residents opposed to its plan to develop the world’s largest carbon capture and sequestration (CCS) project under Lake Maurepas. Livingston Parish officials dropped an imposed moratorium after a federal judge tossed the measure and agreed to a settlement with Air Products.

Department of Natural Resources, on Louisiana’s efforts to gain regulatory primacy over permitting from the Environmental Protection Agency

AT THE STARTING GATE

Meanwhile, several projects are at the starting gate and ready to pull the trigger if and when their permits are approved. Most prominently, CF Industries entered into a largest-of-its-kind commercial agreement in 2022 with ExxonMobil to capture and permanently store up to 2 million metric tons of carbon emissions annually from its Donaldsonville manufacturing complex.

In preparation, CF Industries is building a $200 million carbon dehydration and compression unit to enable captured carbon to be transported and stored. ExxonMobil has also signed an agreement with EnLink Midstream to use the pipeline company’s transportation network to deliver carbon to permanent geologic storage in Vermilion Parish. Startup for the project is scheduled for early 2025.

C. Blake Phillips, senior manager of carbon solutions at Dallas-based EnLink, says his company’s existing 4,000 miles of

LEGAL AND LEGISLATIVE BATTLEGROUNDS

PERMITTING DELAYS aren’t the only thing standing in the way of CCUS investments.

“Our industry needs to do better at educating the public about the safety aspects of the CCUS industry, as well as its importance,” acknowledges C. Blake Phillips, senior manager of carbon solutions at Dallas-based EnLink says. “Louisiana can be a place where products are manufactured with a low carbon intensity. We need to ensure that people understand and trust this industry and know that it can be done safely and reliably.

“The skillset needed to make that happen has existed in Louisiana for decades.”

the company. Ultimately, Air Products plans to open a $4.5 billion hydrogen manufacturing complex in Ascension Parish by 2026 that would store its carbon output a mile beneath Lake Maurepas.

“We are pleased with the ruling, and we remain committed to continuing to share information with all local parish councils, elected and regulatory officials and local residents about Air Products’ clean energy project and its environmental and economic benefits, and employment opportunities,” say Art George, Air Products’ communications director, in a statement.

natural gas pipelines in Louisiana are already operating at adequate pressures for carbon. Additionally, they’ll only need to move the product some 60 miles from the source to the sequestration site, so the pressure loss will be relatively low.

EnLink’s existing 36-inch pipeline running from Belle Rose to Week’s Island will be converted from natural gas to carbon service in preparation for the project. Some of the pipeline will need to be replaced, but Phillips expects that to be minimal. “Some valve sites might need to be upgraded due to their metallurgy, but there will only be minimal work due to the suitability of the existing pipeline.

“It will have very low, non-material impact on our business because of the redundancy in the pipelines and available capacity,” Phillips says, “although we will have some new build in association to get into Exxon’s facility.”

EnLink has also announced letters of intent with Oxy, ConocoPhillips and Talos Energy.

Unfortunately, public concerns have already led to delays. In Livingston Parish, Air Products was initially blocked from initiating its Class 5 injection wells at Lake Maurepas by the parish government body, but later cleared by a federal judge.

Air Products had sued Livingston Parish’s government in October for adopting a 12-month moratorium on the injection wells—which are used to inject non-hazardous materials underground—and detonation of charges for seismic testing, despite the company having received permits from state agencies to perform both in Lake Maurepas within the parish’s bounds.

The project was the subject of controversy for the better part of 2022. Those opposed to the Air Products project also expressed fears on how carbon capture and sequestration could affect Lake Maurepas’ wildlife and recreational boating industry.

Seismic testing in the lake began in December and will run through the spring. The two Class 5 injection wells slated for this project will be built within the bounds of Livingston and St. John parishes to collect geotechnical data for

There are other battle lines being drawn at the legislative level. Most recently, Rep. Robby Carter, D-Amite, pre-filed a bill for the upcoming 2023 Louisiana legislative session that would remove eminent domain rights given to private companies 14 years ago allowing them to seize private property for carbon pipelines.

For Carter, whose district includes East Feliciana, St. Helena and Tangipahoa parishes —where some of the carbon capture projects have been proposed—the issue isn’t just about property rights. Carter is concerned about the safety of the process and has questions about the projects’ energy and water usage, among other things.

Still, there are plenty of CCUS proponents at the state level. The first year of Louisiana’s Climate Action Plan to reduce greenhouse gas emissions to net zero by 2050 was marked by industry commitments to spend billions on facilities to help the state meet that goal, according to a report approved in February by Gov. John Bel Edwards’ Climate Initiatives Task Force.

A portion of the more than $21 billion in new or expanded industrial projects will go toward the creation of carbon capture and storage facilities.

“We are still waiting for any type of word, whether an approval, denial or even feedback.”

PATRICK COURREGES, communications director, Louisiana

JULIE DERMANSKY

‘It doesn’t have to be painful’

BY SAM BARNES

Change is inevitable in life and in business, but Julie Heinz at ExxonMobil says it doesn’t have to be a confusing or painful process. As ExxonMobil’s corporate change management o ce manager, Heinz guides employees through the rigors of change by providing understanding and support in a manner that will give it “stickability.”

Her Baton Rouge o ce, created in 2021, seeks to deliver optimal value during the implementation of any new initiative, solution or project by enabling employees to more seamlessly adopt those changes. Heinz has four direct reports, but also facilitates a global community of change leaders. In turn, a “hub-andspoke” model, comprised of various change teams across ExxonMobil’s portfolio, works

speci c initiatives within individual parts of the organization.

Heinz is passionate about establishing enterprise-wide change management practices and is a certi ed Prosci change management practitioner and trainer. “A lot of my people don’t necessarily have a change management background,” Heinz says. “I look for people who are eager to learn and adapt quickly. Strong commu-

nication skills are important. Analytical skills are also a must.

“When it comes to implementing change, we’re not the domain experts. In our role, we help people think through how they adapt to change, coordinate activities to integrate the change, and guide them through exercises and assessments to determine the impact of the change.”

A Recipe for Change Management

1. Leadership must endorse the change.

2. Answer the “why”: Why is change necessary?

3. Show the team that the future state will be better than the current state in a way that’s compelling and true, and in a way that resonates with them.

4. Support them through the transition process. Equip them for the change with necessary training or tools.

5. Embed the new technology or process into the onboarding process for those roles and incorporate it into business practices and our governance and sustainment mechanisms.

How one energy company is helping its team become more adaptable to the rigors of change.

How would you define “change management”?

Change management is a strategic approach to preparing, equipping and supporting people for change. In the world, the rate of change is exponential. It’s never stopping and never slowing down. We need to be able to adapt and quickly capture the value of what we’re trying to do so we can move in the direction we need to move as a competitive organization.

Is it a new concept for the industrial sector?

Based upon my own observations, ExxonMobil is a bit of a leader in this space. As a corporation, we’ve gone through a maturity journey. We’ve found that change management is a competency that we all need as employees. We need to have the resilience and capacity to change in an effective manner.

Historically, change management was given a lower priority. But we now realize that if we don’t have the right solution with the right process and strategy behind it and aren’t supporting our people to understand its value and the case for change, we won’t get the value. That value proposition is what makes change management critical. We want to have a work force that has clarity and is energized with the direction we’re going.

What are the steps in the change management process?

Step one is endorsement by leadership. Having a leader endorse the new strategy and convey to the employees that we’re going to guide them through the pro cess and support them … that’s a big part of it. You must also answer the “why.”

If you can’t show them that the future state will be better than the current state in a way that’s compelling and true, and in a way that resonates with them, they’re not going to come aboard. Therefore, it’s incumbent upon us to convey that we’re rolling things out that will make their lives more productive and better as employees, or it will generate some value to the corporation.

Next, we must support them through the transition process, provide them with any necessary training or tools that they’ll need, and equip them for the change.

The sustainment piece is equally critical. You can’t just roll something out and expect it to stick forever. People often change jobs, so we need to make sure the new technology or process is imbedded into the onboarding process for those roles. It should also be incorporated into our business practices and our governance and sustainment mechanisms. When we put all these pieces together, we create the right recipe for getting folks to really adopt the change.

Any recent examples of how change management processes are working for ExxonMobil?

ExxonMobil recently announced some significant organizational changes that will create a Global Business Solutions organization and a Centralized Supply Chain organization. These will have a huge organizational impact, but will require a shift in mindset to be effective. Through our change management processes we’re making sure that our people understand how we need to think differently and use these different processes. We want to ensure that they understand how the future state is better than the current state.

How do you measure the success of what you’re doing?

Measurement is definitely a part of it. Sometimes it’s qualitative, but at times it’s quantitative. For example, after implementing a new mobile application for instrument calibrations in the field, we were able to monitor usage of that system to gauge our success. However, when you’re implementing something that’s a process or mindset change, it can be a bit tougher. We use the ADKAR (Awareness, Desire, Knowledge, Ability and Reinforcement) model, a well-known industry standard for change management. We strive to help our employees understand the case for action (Awareness), gauge their willingness to adopt the change (Desire), equip them with the information or tools they need (Knowledge), guide them through the process of adopting the change (Ability) and provide support upon implementation (Reinforcement).

If we are implementing change at a particular site, one of the first things we’ll do is meet with key stakeholders to build awareness and desire. I’ll tell them what we’re doing, why we’re doing it and why it’s valuable in order to get their support. We’ll follow up with some simple questions across various people groups and across time to gauge whether we’ve been effective in adopting the change.

What happens when the feedback is negative?

I always say, “Don’t ask for feedback if you’re not going to do anything with it.” Can we address every piece of feedback? No, but at least we can tell them why and help them understand the context a little better. Or perhaps the resistance is for a very good reason. Maybe there are multiple changes planned during the same quarter and they’re overwhelmed.

I think it’s a condescending comment to say people hate change. I think that they don’t like unnecessary change or poorly planned change, but if something is a good solution, solves problems for them, is easy to use, and they have the right support, they’ll come along. We need to make sure that the change solves a real problem. That makes change management so much easier for us.

ExxonMobil change management leader Julie Heinz

10/12 Industry Report sat down with JULIE HEINZ to discuss the purpose of change management and what she’s discovered since taking over her role in 2021.

EARTH’S DIRTY PROBLEMS. SEMS’ GREEN SOLUTIONS.

MISSION STATEMENT

SEMS, Inc. is committed to attracting, training, and retaining highly skilled employees that are responsive to our client’s needs, always bringing forth a total quality management team

CORE VALUES

Family. Reliable. Safety. Passionate. Responsive

SAFETY FIRST

Our superior safety record is proof of our commitment to a culture of safety on every project.

LOCATIONS

Head Quarters: Baton Rouge, LA

Memphis, TN | Mandeville, LA | Shreveport, LA | Jackson, MS

OUR HISTORY

SEMS has been providing environmental solutions since 1992. Following a devastating lay-off, Mark Morgan used his expertise in the environmental market, the support of one client, and faith to establish SEMS. Mark has remained relevant in the environmental field because of his ability to think creatively, his extensive experience, and his dedication to meeting the needs of his clients. In January 2021, Mark promoted his son, Adam Morgan, to president of SEMS.

Adam has taken various operational and strategic responsibilities including leadership of the company’s growth and productivity initiatives. After 30 years, SEMS has grown from one small office in Baton Rouge to five locations across the Southeast with 80 employees. Through the years, SEMS has remained committed to our core values and mission by providing excellent customer service to our clients.

WHAT WE DO

SEMS is a regional environmental management firm with a national reach. Our decades of experience have positioned us to help you navigate complex projects in highly regulated industries. Our team has the training, experience, and expertise to deliver high quality results on a broad range of projects of various scale.

SEMS major service lines:

• Environmental Engineering & Consulting

• Remediation

• Demolition & Asset Recovery

• Industrial Services

• Industrial Hygiene

• Specialty Services

Adam Morgan & Mark Morgan

ENVIRONMENTAL CONSULTING

The environmental consulting team at SEMS identifies problems, evaluates risks, recommends solutions, and manages compliance requirements at the local, state, and federal level. They advise individuals, businesses, and governmental agencies on issues that impact the environment. SEMS team includes environmental and civil engineers, geologists, hydrogeologists, environmental scientists and technicians with the experience, knowledge, and resources to help clients manage the most challenging environmental problems in a safe, efficient, and effective manner.

INDUSTRIAL SERVICES

SEMS offers a wide range of industrial services such as tank cleaning, sludge removal, sewer line cleanout, pit cleanouts, high vacuum extraction and so much more! When you contract with SEMS, you get more than a vacuum truck, you get the assurance that 100% of the staff is 40-hour HAZWOPER trained and knowledgeable in handling waste. With a diverse team of skilled professionals, we look forward to tackling your industrial service needs.

REMEDIATION

Environmental compliance and remediation can be complex and expensive for clients. SEMS understands the environmental industry and uses remedial technology to provide professional, clear communication, to assist clients in solving their environmental problems at a minimized cost. SEMS team consists of knowledgeable experts that are experienced in a wide variety of remediation technologies: soil excavation, hazardous and non-hazardous waste management, solidification, pond dredging, dewatering, in situ and ex situ chemical oxidation, soil vapor extraction (SVE) system and groundwater treatment system O&M. SEMS is proficient in providing site investigation and assessment services for chemical plants, superfund sites, landfills, gasoline retail stores, and Louisiana Trust Fund projects. SEMS has performed thousands of UST Closures and currently manages over 40 OWS/ STS sites in multiple states.

INDUSTRIAL HYGIENE

Our industrial hygiene team identifies, evaluates, and manages environmental and occupational health hazards. The SEMS team has significant experience and training in performing asbestos, lead, IAQ & mold inspections, industrial IH surveys, and project oversight. Additionally, SEMS IH team currently holds certifications for asbestos training in LA & MS.

DEMOLITION

SEMS begins every demolition project by evaluating the best technology to safely dismantle the structure. When needed, they use a multidisciplinary approach, utilizing a combination of services such as asbestos abatement, air monitoring, engineering, and structural demolition to attain the maximum level of asset recovery while working within a budget and recycling to reduce the environmental impact. Turnkey service and an excellent safety record make SEMS an easy choice to demolish your next industrial structure, above ground tank farm, or selective plant decommissioning.

SPECIALTY SERVICES

SEMS offers specialty services including Street Sweeping, PFAS Remediation, Disaster Cleanup and Restoration, Emergency Response, Expert Advising and Witnessing.

Ed Gallagher VP Business Development

David Sessions VP Engineering & Consulting

Greg Ellison Chief Strategy Officer

Mike Thornton Director of Remediation & Industrial Services

Ioannis Petikas Director of Industrial Hygiene & Specialty Services

The other WORKFORCE

BY SAM BARNES

Managers share their advice for building loyalty among contractors and suppliers.

At a time when limited manpower, accelerated schedules, and increasing construction volumes are in the headlines, an industrial owner’s attempts to build effective relationships with its contractors and suppliers can seem an impossible task.

In such an environment, skilled laborers often move around from job to job and state to state in search of higher wages, and that can have a negative impact in terms of productivity and safety as they must adapt to new work cultures and other unique jobsite dynamics.

Owners, therefore, have a vested interest in fostering and maintaining long-term relationships with their contractors, says Paul LaFleur, maintenance manager at Phillips 66 in Lake Charles. It all begins with a core belief that contractors are partners in the process, rather than merely laborers who get the job done.

“We feel it’s important to have a good partnership with our contractors,” LaFleur says. “A consistent workforce is familiar with the plant, and that pays big dividends.

“From a safety, efficiency and productivity standpoint, when we have people who already know our procedures and work policies, everything just flows more efficiently,” he adds. “Otherwise, there’s a steep learning curve. If the contractor isn’t successful, then we’re not successful.”

Consistency and stability are important for team building, so Phillips 66 seeks to develop long-term contracts with its contractor maintenance teams to create a stable workforce.

“The key is communication. It’s important to develop a human relationship rather than a digital one, so we try to get ‘face time’ with our suppliers and understand them.”

KENNETH DUKES, manager of procurement and materials, CITGO Petroleum in Lake Charles

“That’s not possible in every situation, of course,” LaFleur says. “You’re going to have peak work periods where you’ll have to bring in additional manpower. But it’s critical to have a core group of contractors that’s there for the long term.”

It’s a typical scenario for many industrial contractors. Baton Rouge-based Brown & Root, for example, is embedded in several southeast Louisiana plants under regular maintenance contracts and often assists with major turnarounds, says COO Fred McManus.

“I have a 20- to 30-year history with a lot of these customers as a maintenance contractor, through Brown & Root and other companies,” McManus says. “For major turnarounds, we’ll commit typically 18 months before the outage, where our guys will be involved in the planning and preparations … then we’ll pull the team together to execute the outage.”

TEAM BUILDING CHECKLIST

Kenny Dukes, manager of procurement and materials at CITGO Petroleum in Lake Charles, says his plant “has quite a few nested service providers, so it’s important that we maintain strong relationships to keep things moving.”

Dukes, who oversees procurement and material movements at Citgo, approaches team building much like any other relationship.

“The key is communication,” he

says. “It’s important to develop a human relationship rather than a digital one, so we try to get ‘face time’ with our suppliers and understand them. If you can understand their business model and the challenges they face, it makes it easier to come to an agreement.

“And when situations arise, it’s easier to manage them if you have an existing relationship that’s based on trust and honesty. There’s a two-way relationship there. We want to make sure that we walk the walk, and that we’re not just telling them to do some-

In it for the long haul

Six secrets to maximizing your embedded workforce

1. Transparency and open communication are vital. Look for communication touchpoints other than just reporting problems.

2. Develop long-term contracts for consistency and stability.

3. Look for ways to empower contractors just as you do your full-time employees. Do they have stop-work authority should they notice a safety violation? Are they included in daily meetings or planning?

4. Be cognizant of workloads and needs. Plan on the front end to ensure adequate lead times and communicate any schedule changes immediately.

5. Pay suppliers in a timely manner in the agreed-upon terms.

6. Use quarterly KPIs to gauge the productivity, safety and progress of core contractors, then create a list of action items to address collaboratively.

thing that we’re not willing to do.”

Developing a culture of empowerment is also key, LaFleur says. Phillips 66 sponsors a formal “coop” governing board and requires that all of its core contractors participate. The group, overseen by a contractor-appointed president and vice president, seeks to develop a collaborative atmosphere between both the contractors and owner.

Phillips 66 also empowers its contractors with “stop-work authority,” whereby they can shut down a work activity should they notice a safety violation.

“Our highest safety award is the ‘Golden Frisbee,’ which recognizes a contractor employee who stops a Phillips 66 employee for a safety violation,” he adds. “In the process, they’re helping us become safer. We want the contractors to feel as empowered as a Phillips 66 employee, because they have their own view, their own paradigm and valuable insight into those things we need to do better.”

Phillips 66 also includes contractors in its daily meetings, when they review incomplete items from the previous day’s schedule as well as upcoming work for the day. It’s both an

intentional and proactive process. “The contractors are in the meeting with us, and we communicate our priorities for the day,” LaFleur says. “If you’re part of the process, you’re part of the team.”

Transparency and open communication are equally vital to relationship building.

“From a project manager or site manager level to my level, we have regular communication ‘touchpoints,’ whether that be a formal meeting or an informal discussion in the hallway,” Citgo’s Duke says.

“It’s very much an open-door policy at all levels of the organization. There doesn’t always have to be an issue; sometimes it’s just a touchpoint to continue building the relationship. I might be communicating at the site manager level, while my foremen and the contractor foremen are also having conversations.”

The bottom line? It’s important to be open and transparent when dealing with suppliers and contractors, while also remaining cognizant of their current workloads and needs. “We do a lot of planning on the front end to ensure we give them adequate lead times, and we have an open communication about a supplier’s

“We feel it’s important to have a good partnership with our contractors. A consistent workforce is familiar with the plant, and that pays big dividends.”

PAUL

LAFLEUR, maintenance manager,

Phillips 66 in Lake Charles LEROY TADEMY

schedule,” Dukes says. “If our needs change, we communicate that with them. Likewise, we expect our suppliers to inform us of any production schedules and challenges.”

WHEN A PROBLEM ARISES

Inevitably, there will be con ict in any relationship, but having a foundation of transparency and trust can help a team weather most storms.

Pressures of time and budget particularly as of late can cause a signi cant strain on a project team as workloads ramp up and time gets short.

“Just having the time to spend with the suppliers and get to know them is a challenge in itself,” Dukes says. “When those issues are raised, we address them. Sometimes we’ll bring suppliers on site, along with our senior leadership team, and we’ll try to come up with solutions. ere’s also a ‘lessons learned’ process that we go through.”

Wages are also “very dynamic

right now, and people are coming to us more frequently asking for wage adjustments.”

In response, Citgo performs a market analysis of Lake Charles and the Gulf Coast region to ensure that they assess a fair rate. “Contractors are usually trying to make sure that we’re setting that base wage at the right level so that they have the resources to support it. It behooves us to have those

conversations. We ultimately want our projects to be successful, and we want quality people.

“ e current labor market is a challenge for everyone. Labor rates are escalating, and that’s a challenge because we have to come together to a mutually agreed point.”

Pay schedules can place an additional strain on the contractor-owner relationship. “We

strive to pay our suppliers in a timely manner in the terms we agreed upon,” Dukes says. “I know that many companies have big accounts payable systems that can sometimes cause delays, so we try to intervene where we can to see if there’s something we can do to push an invoice through.”

Regardless of the obstacles that arise, a spirit of collaboration increases the likelihood that an agreement can be reached and the relationship maintained. Phillips 66 uses quarterly KPIs (Key Performance Indicators) to gauge the productivity, safety and progress of its core contractors, then works collaboratively with them to create a “bucket list” of action items.

“ at’s what a partnership is all about,” LaFleur says. “We look at the barriers that they might be encountering, and we try to collectively look at how things are going. At the same time, we want to see if there are things that we can do to remove any obstacles, and together we develop a corrective action plan to address that.”

ISTOCK

FOCUS

MAINTENANCE, RELIABILITY & TURNAROUNDS

Surge Protection

By SAM BARNES

South Louisiana maintenance turnarounds could max out the labor force when owners pull the trigger this year.

Asignificant uptick in maintenance turnarounds is most definitely on the way, beginning this spring then followed by a much larger splash in October.

From a workforce perspective, it couldn’t come at a worse time. The labor forces of many industrial contractors are already maxed out

and it could get a lot worse should expected capital projects crank up at the same time later this year and into 2024.

Of all of Louisiana’s metro areas, the greater Baton Rouge area has the largest volume of work about to break ground.

Loren Scott, economist at Loren C. Scott & Associates in Baton Rouge, expects a spike of about

8,000 industrial workers, largely due to several impending capital projects in the chemicals and renewables sector, such as Grön Fuels in Port Allen and the retrofit of the Shell plant in Convent. Says Scott: “Baton Rouge has a host of capital projects with a 60 percent probability of breaking ground.”

At the same time, Industrial

Info Resources of Sugar Land, Texas, is tracking some $1.6 billion in maintenance turnarounds/ outages through the end of 2024 across South Louisiana, the bulk of which to be concentrated in the southeast Louisiana chemical sector. The reason? Consistently high rates of utilization, says Trey Hamblet, vice president of chemicals research for IIR. “They’re

“The turnaround workload has been put off for the last few years, and we’re starting to see that come to fruition.”

FRED MCMANUS, COO, Brown & Root

operating all available shifts and running at full tilt,” he adds. “Of course, when you’re running a plant at that pace it requires maintenance.

“There’s been a very consistent increase in both spend and activity in the chemical sector, year over year, for quite a long time,” he adds. “Other than a little bit of a fallback in 2020, we’ve seen nothing but a continued climb in maintenance for many years now.”

The maintenance surge is expected to peak this September and October with some $174 million in turnaround expenditures in South Louisiana, the most significant of which at Dow Chemical’s St. Charles plant (hydrocarbon unit), Indorama Ventures in Lake Charles (olefins plant), Shell Norco (delayed coker unit), Dyno Nobel Inc. in Westwego (anhydrous ammonia plant), and Tokai Carbon CB Ltd. in Addis (carbon black).

Hamblet says the refining industry will also have a “pretty heavy spring and fall” due to turnarounds that have been pushed for two or more years. When demand for fuel and refining products surged back to pre-pandemic levels in 2021-22, refiners postponed

maintenance to keep up with the need. As a result, he says there are “a dozen or so” refinery units with planned turnarounds that were postponed from a couple of years ago. As a workaround, some owners are choosing to push turnarounds to the summer “off-cycle” to balance the load.

Fred McManus, COO at Brown & Root in Baton Rouge, has seen a 20% to 25% uptick in turnaround work since the pandemic, and it’s holding steady. Most of their Louisiana work stretches from just north of Baton Rouge to New Orleans, with and increasing number of clients in the southwest part of the state. “The turnaround workload has been put off for the last few years, and we’re starting to see that come to fruition,” McManus says. “For that reason, our workload has been higher than in the previous three years.”

Brown & Root’s head count is up by about 10% to 15% over last year.

Currently, the contractor averages about 9,000 employees, 3,500 of which are in Louisiana, with another 2,000 to 3,000 in Texas and the remainder across 25 other states. “I was a little concerned whether we were going to be able to get the people we needed, but we seem to be holding our own,” he adds. “Our spring outage season (January through April) is going to be one of our best.”

Of course, the industrial surge will be good news for the Louisiana economy. “Southeast Texas and south Louisiana are going to be unique in terms of having a lot of industrial expansion work that will continue through any national recession,” Scott says. “As a result, we forecast that Louisiana’s economy will grow right through the recession.”

There’s also some good news on the supply side of the equation. “About the time we need those workers, you’re going to find a lot of people starting to look for work,” he adds. “People don’t appreciate the impact of the stimulus checks. When you look at savings rate in the U.S., it increased above its trend by $3 trillion. It was a monstrous increase. As a result, a lot of people decided

to stay at home and live off the money. That has been whittled down to $1 trillion, so people will be looking for work.”

Additionally, most forecasts indicate that a national recession will occur by the second half of 2023. “It’s not going to be a very deep and long recession, but it will be significant enough that people will lose their jobs. They’re going to be looking for a place to find work, and south Louisiana is going to be a hot spot.”

GETTING READY

David Helveston, president and CEO of Associated Builders and Contractors’ Pelican Chapter, says many of his members are already at full employment, and a presumed influx of work would make it difficult for them to find the qualified workers they’ll need. Helveston meets with the Industrial Contractors Council once a month to gauge future needs. “They expect the labor market to tighten significantly over the next year as many of these projects get under way,” he says.

WHERE THE TURNAROUNDS ARE

The maintenance surge is expected to peak this September and October with some $174 million in turnaround expenditures in South Louisiana. Here’s a look at the big ones:

Dow Chemical’s St. Charles plant Hydrocarbon unit

McManus says Brown & Root’s priority has been finding an adequate number of millwrights, combination welders and heavy equipment operators. “I make sure that when we book work that I know for certain that I can get those resources,” he adds. “That’s where we focus our training dollars.”

Of course, a surge in worker demand will likely come with a corresponding escalation in worker wages. Brown & Root relies upon Alpha Resources, a Birmingham-based human resources consultant that provides “point-in-time” craft compensation data to keep up with going wage rates and per diems.

Scott Barringer, president and CEO at PALA Group in Baton Rouge, expects wage rates to increase as projects are

“Baton Rouge

has a host of capital projects with a 60 percent probability of breaking

ground.”

LOREN SCOTT, economist

DON KADAIR

Indorama Ventures in Lake Charles Olefins plant

Shell Norco Delayed coker unit

Dyno Nobel Inc. in Westwego Anhydrous ammonia plant

Tokai Carbon CB Ltd. in Addis Carbon black

$1.6

billion

Value of maintenance turnarounds/ outages through the end of 2024 across South Louisiana. Most of it is concentrated in the southeast Louisiana chemical sector.

SOURCE: Industrial Info Resources Sugar Land, Texas

released and contractors compete for the same small group of workers. “Ironically, we currently have more workers leaving the state for work than we have coming to Louisiana,” he adds. “Construction workers go where the opportunities are and where they can make the most money.”

Glen J. Gulino, executive vice president of ISC Constructors LLC in Baton Rouge, says his company’s executive team has been discussing the best steps for preparing for the in ux. “We feel most of the heavy lifting will take place in 2024, 2025 and 202,” Gulino says. “ at will be sustained as these projects continue.”

ISC currently maintains a workforce of some 1,200 to 1,600 craftspeople, and during cyclical maintenance cycles they’ll bring in another 50 to 300 employees

to support maintenance turnarounds.

Fortunately, ISC hasn’t had to turn down work due to a lack of manpower, although Gulino says that time could come. “We can’t take our eye o the ball,” he adds. “When we start getting these wage and compensation pressures, our biggest priority is ensuring that our associates are properly compensated and have good bene ts to keep them from going elsewhere.”

ey currently bene t from a “steady supply” of trainees being funneled through the ABC training program. Helveston feels that ABC’s existing training facilities on Highland Road can adequately meet the need, whatever that might be. “Internally, our pipeline of students is in a good position over the next few years,” he adds.

“[The Industrial Contractors Council] expects the labor market to tighten significantly over the next year as many of these projects get under way.”

DAVID HELVESTON, president and CEO, Associated Builders and Contractors’ Pelican Chapter

DON KADAIR

The Amazon Effect

How the e-commerce tech company is changing customer expectations in the industrial supply chain.

The petrochemical industry is in the middle of a transformation of sorts in terms of its logistics and supply chain processes. It seems industrial owners haven’t been excluded from the changing customer expectations brought about by the Amazon business model – aka “The Amazon Effect.”

Speakers at a recent Petrochemical Supply Chain & Logistics conference in Houston pointed to enhanced transparency, increased reliance upon technology and greater visibility of the entire order and delivery process as direct outcomes of Amazon’s impact on commerce.

“The bottom line is, are we meeting the customer’s expectations in the current environment?” says Mark Baxa, president & CEO of The Council of Supply Chain

Management Professionals in St. Louis, who mediated the panel.

By SAM BARNES

Bruce Sullivan, vice president of integrated logistics at Covestro in Freeport, Pennsylvania, a supplier of premium polymers, says The Amazon Effect has pushed the industrial market in a new direction. An owner’s success will soon depend upon its ability to enhance the end-to-end visibility of the process through data unity and building resilience with smarter planning and operations. “We would’ve eventually gotten there, but the Amazon model has pushed industrial companies to look at transparency, technology and visibility into their products, from point of shipment through delivery,” Sullivan says.

“It’s a matter of figuring out how we as an industry can meet customer demand and manage expectations.”

The Amazon Effect is particularly impactful in the logistical and supply chain space, says Manish Misra, vice president of Sandpiper Chemicals in Houston. In that realm, it can affect everything from the conceptualization of a manufacturing facility to the delivery of the product it produces. Sandpiper Chemicals is currently building a grassroots methanol plant in Texas City, Texas, to be completed in 2024.

Misra says network optimization is a key component of the Amazon way doing things. Often, he adds, owners are choosing to physically locate closer to the customer to both reduce product cost and improve reliability. “The lifecycle of a product starts with the location of the manufacturing plant,” he adds, “and how efficiently you get your feedstock, equipment and supplies. That capital expenditure ends up in the cost of the product and passed on to the customer.

“One of the key considerations in choosing your location,” Misra says. “Will you have adequate access to feedstocks? Can you get the feedstocks at a lower cost? Can you transport your finished product to you customer at a lower cost?

Not only do you have access to rail, shipping and other infrastructure, but do you also have access to pipelines so that your product can go directly from where you’re producing to the end customer?”

ose factors all contribute to bringing down the overall cost of the end product. “After all, a customer wants a product at the lowest cost within a reliable time frame,” Misra notes. “Choosing a physical location that enables an owner to do that can make all the di erence.”

GOING REGIONAL

Similar to Amazon’s strategy of building distribution facilities at various locations across the country, industrial owners are nding ways to get their product closer to the customer via warehouses for improved “last mile” deliveries, or by building manufacturing facilities closer to a product’s nal destination.

“ e linear supply chain is something of the past,” Misra says. “Much of our product goes

to a warehouse. Not only does that help us from a petrochemical standpoint, but on the transportation side as well.”

It’s all about network optimization, says Sullivan, “and ours at Covestro is pretty robust. Whether shipping by rail to a transload location or to a warehouse, it gets our product closer to the customer and helps with that last mile delivery where we can meet customer demand in a day or two days, whatever the case might be. Much of our product goes to a warehouse, whether the northeast, west coast or elsewhere.”

When properly applied, technology is undeniably crucial in terms of automating and accelerating the process.

“For example, can you incorporate AI-based executions strategies when building up your plant and processes?” Misra says. “Can you create your network in a way that is more e cient? In our company, we don’t have the numbers of employees as some of the larger players, so we lean on

Four ways Amazon is influencing industrial supply chain and logistics

1 2 3 4

Demand for end-to-end transparency of shipping and delivery

Demand for enhanced customer experience through technology

Network optimization through proximity to customers for ‘last mile’ delivery.

Lake Area Industry Alliance is Proud to be Part of the Southwest Louisiana Community

Southwest Louisiana is home to a thriving industrial community. Lake Area Industry Alliance is proud to be a channel of communication between industries and our community, offering education about the industrial processes, working with area schools to meet present and future needs of the industrial community, and lending support to local leaders for the continued positive growth of Southwest Louisiana.

Beginning with supporting the World War II efforts with refineries to produce fuel, to current production of hydrazine to assist spacecraft landing on Mars, the companies represented by LAIA continue to produce products that consumers depend on and demand.

The taxes paid by industry including property, sales and state income tax, have enabled the parish to improve our schools, enhance our sheriff’s office facilities and supplies and improve area roads and drainage. Donations to charitable causes and educational institutions such as McNeese University, SOWELA and the parish school system improve the educational foundation for those in our area. Annually, thousands of volunteer hours of have helped those in need to build a better life for themselves and their families.

Lake Area Industry Alliance members produce products that we need every day while improving the quality of life in the community where we work and live.

technology to deliver more value and e ciency to the customer.

at’s why they’re coming to us.”

But no matter the technological platform, it’s important to create a simpli ed process that enables customers to fully bene t from improved transparency and visibility into their shipments, the panel concluded.

From order planning, procuring to servicing, the industry is transforming into an integrated technology platform that gives customers transparency during every stage.

As with Amazon, customers want to know the location of the product and when it will be delivered. “ at’s the critical piece,” Sullivan says. “When you look at the networks that we have, the complexities of our supply chains and the touchpoints, the ability to track your product or shipment is signi cant. e customer wants visibility.”

Sullivan’s company uses a third-party network of suppliers that bring a high level of techno-

logical expertise to the table. “ at provides us with the platform, expertise and skillsets to facilitate the interface with the customer,” Sullivan adds. “We have tracing

and tracking on the transportation end, but the technology is a differentiating factor. Having third parties and the core values they provide is critical.”

SOME EXPECTED RESISTANCE

Nonetheless, there is some undeniable industry resistance to an Amazon-based approach to the industrial supply chain, Sullivan says, but that’s mostly due to a lack of trust.

“We’re a little slow to adapt,” he adds. “ is is an industry that likes to talk to someone or deal with the same customer service people. ey’re used to being able to call someone to check on their order.

“Now we’re trying to get them to do it themselves and trying to shake that up. It’s about getting technology to the point where they can trust it and trust the data so that they know they’re going to get their shipment, then reinforcing it with a self-service portal that enables them to do just that, and do it easily.”

e pace of the change, however, will depend upon the industry. “ e buyers are di erent depending upon the market,” Misra says, “but they’re all moving in that direction in one way or another.”

SAM BARNES

CUSTOMER SATISFACTION? At the spring Petrochemical Supply Chain & Logistics Conference in Houston, panelists discuss new customer expectations. From left: Mark Baxa, president and CEO of The Council of Supply Chain Management Professionals; Bruce Sullivan, vice president of integrated logistics for Covestro; and Sandpiper Chemicals Vice President Manish Misra.

JM TEST SYSTEMS

MORE THAN CALIBRATION

Asubstandard quality of equipment received from vendors could have significant consequences, not just for the success or failure of your project but more importantly for the safety of your employees. Finding a vendor that offers sales, in-house and on-site calibration, rental products, PPE testing, tool repair, training courses, and custom products all in one place is almost impossible.

However, JM Test Systems has been serving as the single source for all your test equipment needs, fulfilling these requirements successfully for over 40 years.

In 1982, Ed Morrison established the company while working as an equipment manager for a large instrumentation and electrical contractor in Louisiana. He faced difficulties in finding vendors who could meet his high-quality standard. Consequently, he had to repair the equipment himself. This hands-on experience motivated him to take a chance and establish his own company at the age of 54, just as he was about to retire.

JM Test Systems still operates as a family-owned business and remains true to the values upon which it was founded, including a dedication to precision, dependability, quality, and service. What started as a simple calibration service company has grown significantly to

employ over 500 individuals and operate 10 labs across the country. All the while, the company has maintained its laboratory accreditations and certifications, such as ANSI/ NCSL Z540-1, ISO 9001, ISO 17025, and NAIL for PET. This unique combination allows the company to offer unparalleled equipment solutions.

Throughout the years, the company has steadily expanded its product and service offerings. JM Test Systems guarantees its customers’ equipment remains compliant by providing expanded programs, such as calibration and electrical safety on-site, including bucket testing, local pick-up and delivery, glove rotation and surplus management, Electrical Safety Training for compliance on NFPA70E, online customer portal, equipment test reminders, and other valuable services.

The essential factor contributing to their continued success is their commitment to being a service-driven company. JM prioritizes their customers above everything else and tailors its products and services based on direct feedback and safety needs. Whether you’re looking to purchase or rent from their extensive product line, have your test equipment calibrated or request a custom-built solution, JM Test Systems stands ready to help.

WHAT’S NEW

A great deal of growth has taken place over the past 40 years, and JM Test Systems is showing no signs of slowing down.

The company expanded two locations: the 23,000-square-foot Baton Rouge, Louisiana lab at a cost of $2.6 million, and its 4,000-square-foot Odessa, Texas site at a cost of $500,000. Additionally, the company's location in Mattoon, Illinois, has been expanded to include calibration capabilities.

The growth doesn’t stop there.

JM Test Systems recently announced a partnership with Kanbrick, a firm focused on investing in and building founder- and family-owned businesses. Kanbrick will partner with JM Test’s owners to support the next phase of growth for the business.

“Kanbrick was the clear choice given their long-term perspective, experience building businesses, and focus on partnering with family- and founder-owned businesses,” said CEO Scott Morrison. “We’re looking forward to continuing to deliver best-in-class services for our customers and accelerating growth, while honoring our father’s legacy.”

A view of the $2.6 million expansion of Baton Rouge’s 23,000-square-foot Calibration Lab.

• 40 Years in Business

• 10,000+ Customers

• 500+ Employees

PRODUCT & SERVICE OFFERINGS

• Test Equipment Sales and Rental

• Electrical Safety Equipment/Tools

• In House and Onsite Calibration

• In House and Onsite Electrical Safety Testing

• Repair Services

• Custom Built Test Benches

• Electrical Safety Training

• Field Services

• Rotation and Inventory Management

• Customer Portal

STATS

• 40+ Dedicated Service Reps

• 6 Calibration Labs

• 7 PPE Testing Labs

The business of JM Test Systems is still being run by the sons of its original owner.

From left to right: Scott Morrison, Jace Morrison, and Cliff Morrison.

“We’re looking for ward to continuing to deliver best-in- class ser vices for our customers and accelerating growth, while honoring our father’s legacy.”

CEO SCOTT MORRISON

ACCELERATING THE TRANSITION TOWARD A SUSTAINABLE FUTURE

As the evolving climate crisis requires innovation today to prepare for tomorrow, APTIM strives to build a sustainable future that protects our communities and the natural world. From emergency management and disaster services to comprehensive energy-efficiency solutions, APTIM delivers innovative services that elevate organizations and communities while focusing on sustainability and inclusion.

Born of Veritas Capital’s acquisition of CB&I’s Capital Services business in 2017, APTIM has quickly established itself as a powerhouse in environment, resilience, and sustainability and energy solutions, as well as in technical and data solutions, critical infrastructure, and program management. With operations spanning from Canada to Peru, the company calls Baton Rouge home for its headquarters.

What sets APTIM apart, says Chairman and CEO Mark Fallon, is its unwavering commitment to its mission and clients. “The way APTIM behaves as a company and community is inseparable from the way we serve our clients.”

As champions of the environment, APTIM and its team of world-class engineers, scientists, builders, economists, craft professionals, and procurement, logistics, and process experts all share a passion for APTIM’s mission and their communities.

The APTIM team strives to restore the natural world while enhancing the built environment’s sustainability, reliability, and resilience. Their collective ability to think differently, plan for the unexpected, and develop critical insights allows them to deliver groundbreaking and adaptive solutions that promote the longevity of the communities they serve. Internally, APTIM’s “Commitment Compass” outlines the essential obligations teammates have to one another and their investors. They also follow The Collaborative Way™ framework, a guide to honoring commitments and interacting in a diverse, inclusive, and safe environment.

As APTIM continues to flourish, they seek ways to give back. Their recent partnership with the Louisiana State University College of the Coast & Environment (CC&E) supports local middle and high school students.

The APTIM Environmental & Sustainability Fund offers hands-on learning opportunities for students in Baton Rouge, focusing on the environment, its connection to communities, and the importance of sustainability. The grand opening of APTIM’s headquarters on The Water Campus speaks directly to APTIM’s purpose and leadership in resilience and sustainability. In the coming year, APTIM’s team is eager to engage with the college through the EnvironMentors program, a near-peer mentoring initiative focused on diversifying the coastal and environmental workforce.

APTIM is an industry leader that has successfully harnessed creativity and expertise to revolutionize the way businesses and governments care for and strengthen their natural and built environments. As a company committed to sustainability, APTIM strives to continue delivering innovative solutions that contribute to a brighter future. “For every challenge our clients face,” Fallon says, “there is an opportunity to innovate a fit-for-purpose solution that will raise their organization or community to a new standard of excellence.”

TOP

Mark Fallon, Chairman and CEO

Project by project

($25M-$250M)

Active Louisiana industrial projects announced or proposed since Jan.1, 2014, with projected capital investment of $25 million to $250 million. Second line shows projected capital investment and direct new jobs. List is representative, not complete; statuses and costs change frequently.

1 ExxonMobil Refinery upgrades and new technology

$240M | 1,300 jobs retained

Location: Baton Rouge Status: Completion in 2023

2 Weyerhaeuser lumber mill upgrades

$157M | 4 jobs

Location: Holden Status: 2024 completion

3 Kinder Morgan Louisiana Pipeline expansion

$151M | 0 jobs

Location: Southwest Louisiana Status: December 2023 completion

4 IMTT terminal upgrades

$150M | N/A

Location: Geismar Status: 2023 completion

5 Delek Refinery

$150M | 30 jobs

Location: Krotz Springs Status: 2024 completion

6 CF Industries Green Ammonia

$100M | N/A

Location: Donaldsonville Status: Completion in 2023

7 International Matex Tank Terminals storage tanks, pipelines + dock $100M | 8 jobs

Location: Geismar Status: 2023 completion

8 Cornerstone hydrogen cyanide plant

$100M | N/A

Location: Jefferson Parish Status: Pending

9 Eastman Taminco expansion

$70M | 5 jobs

Location: St. Gabriel

Status: Underway

10 Placid Refining Headquarters + Port Allen facility modernization

$66M | 20 new jobs; 215 retained jobs

Location: Baton Rouge, Port Allen Status: Completion in 2027

11 International Paper Modernization

$52M | Retain 492 jobs

Location: Bogalusa Status: N/A

12 CF Industries

Nitrogen fertilizer plant expansion

$41.4M | 7 jobs

Location: Donaldsonville Status: 2023 completion

13 Deere & Co. manufacturing expansion

$29.8M | 70 jobs

Location: Thibodaux Status: Prduction begins in 2024; full capacity by 2025

BLUE = ADDED SINCE PREVIOUS EDITION

Project by project

($250M and up)

Active Louisiana industrial projects announced or proposed since Jan. 1, 2014, with projected capital investment of $250 million or more. Includes projects that are underway, awaiting FID, and proposed. Second line shows projected capital investment and direct new jobs. List is representative, not complete; statuses and costs change frequently.

1 Driftwood LNG

$16.8B | 498 jobs

Location: West bank of the Calcasieu River, south of Lake Charles

Status: Initial output 2026

2 G2 Net ZeroLNG

$11B | 250 jobs

Location: Cameron Parish

Status: Production in 2027

3 Lake Charles LNG

$11B | 250 jobs

Location: Lake Charles Status: First deliveries expected in 2026

4 Formosa Sunshine Project

$9.4B | 1,200 jobs

Location: St. James Parish

Status: Delayed

5 Grön Fuels

Renewable diesel facility

$9.2B | 514 jobs

Location: Port of Greater Baton Rouge Status: Commercial operations by 2025

6 Delta LNG + Delta Express Pipeline

$8.5B | 300 jobs

Location: Plaquemines Parish Status: 2024 startup

7 Ascension Clean Energy $7.5B | 350 jobs

Location: Donaldsonvlle

Status: FID + begin construction in 2024; production begins in 2027.

8 Delfin LNG

$7B | 400 jobs

Location: Off the coast of Cameron Parish

Status: FERC approved; September 2023 deadline to build and launch onshore infrastructure

9 Air Products Blue Hydrogen Complex

$4.5B | 170 jobs

Location: Burnside Status: Operational 2026

10 Lake Charles Methanol

$4.4B | 200 jobs

Location: Calcasieu Ship Channel Status: Final investment decision projected in 2022

11 Magnolia LNG

$4.35B | 70 jobs

Location: Calcasieu Ship Channel Status: FInal investment decision projected in 2022

11 IGP Methanol

$3.6B | 325 jobs

Location: Plaquemines Parish near Myrtle Grove Status: Pending

12 Pointe LNG

$3.2B | N/A

Location: East Bank of the Mississippi River in Plaquemines Parish Status: FERC permitting review terminated in October 2021

13. DG Fuels Sustainable Aviation Fuel Complex

$3.1B | 1,055 jobs

Location: St. James Status: FEED study complete August 2023; FID Q4 2023

14 CF Industries + Mitsui & Co. blue ammonia plant

$2B | 103 jobs

Location: Geismar

Status: FID second half of 2023

15 Commonwealth LNG

$2B | N/A

Location: Cameron Parish Status: FERC approved November 2022; final investment decision projected in Q3 2023; commercial operations in Q3 2026

16 Proman Big Lake Fuels

$1.6B | 243 jobs

Location: Lake Charles

Status: FID second half of 2023; commercial operations 2025

17 EuroChem amonia/urea plant

$1.5B | 200 jobs

Location: St. John Parish

Status: Pending

18 Port NOLA Multimodal container terminal

$1.8 billion

Location: Violet, St. Bernard Parish

Status: Construction in 2025; first berth opens in 2028.

19 Methanex Corp., Methanex 3

$1.4B | 25 jobs

Location: Geismar

Status: Commercial operaions Q4 2023

20 Shintech Louisiana

Expansion of manufacturing and packaging facilities

$1.3B | 30 jobs

Location: Iberville and West Baton Rouge parishes

Status: Completion in 2023

21 REG renewable energy expansion

$1.2B | 60 jobs

Location: Ascension Parish

Status: Construction complete by 2023; full commissioning in 2024.

22 Shell Chemical

olefins plant

$1.2B | 12 jobs

Location: Geismar

Status: FID Q1 2024; production in 2026 or 2027

23 Mitsubishi Chemical Corp

Methacrylate manufacturing complex

$1B+ | 125 jobs

Location: Geismar

Status: Final investment decision in mid-2022

24 St. Bernard Renewables biorefinery

$835M | N/A

Location: PBF Chalmette Refinery

Status: Startup first half of 2023

25 ElementUS rare earth elements project

$800M | 200 jobs

Location: Noranda Alumina site in Gramercy

Status: Final investment decision in 2022

25 BASF MDI production facility

$780M | N/A

Location: Geismar

Status: Construction began January 2023; complete in 2025

Sources: LED, LEO, 10/12 research

26 Energy World USA

$888M | 150 jobs

Location: West of Belle Pass in Lafourche Parish

Status: Completion 2023

27 Origin Materials biomass manufacturing facility

$750M | 200 jobs

Location: Geismar

Status: Complete in mid-2025

28 Kindle Energy Magnolia Power Generating Station

$750M | 25 jobs

Location: Iberville Parish

Status: Commercial operations in May 2025

29 Southern Cross Transmission Project/HVDC converter station + transmission line

$600M | N/A

Location: DeSoto Parish

Status: Completion 2026

SPONSORED BY

30 Nutrien Ammonia Plant Expansion

$560M | 15 jobs

Location: Ascension + Iberville Parishes

Status: FID 2022

31 Enable Midstream Partners Gulf Run Pipeline

$550M | N/A

Location: Westlake

Status: Projected in service by Q4 2022

32 Westlake Chemicals expansion

$450M | 15 jobs

Location: Geismar

Status: FID October 2022

33 Ventress Solar $300M | N/A

Location: Pointe Coupee Parish

Status: Completion late 2023

34 Huntsman-Rubicon MDI production expansion $280M | 3 jobs

Location: Ascension Parish

Status: Construction underway

35 Venture Global $250M | N/A

Location: Plaquemines

Status: FID March 2023; service by 2025.

leadership epiphany Tammy Little’s

Tammy Little served several stints at Shell Norco and other facilities before assuming the plant manager’s role. Her leadership skills began taking shape while serving as an engineer in the olefins plant, where she developed and executed ideas to ensure plant operations ran more smoothly. At another facility, she innovatively tackled and developed solutions for a variety of operational challenges.

Through those and other experiences, she came to an epiphany. “It taught me to serve those who were counting on me and to do the best that I could,” Little says. “I learned to have faith and trust that it would ultimately pay dividends.”

This brand of “servant leadership” is particularly important now that she’s back at Norco in a decidedly more significant role.

THE CHALLENGE

During the 2008-2009 economic downturn, it became starkly apparent that Shell Norco’s technology and operational approach to the chemicals side of its business were flawed. Put simply, Shell Norco needed to make changes to its feedstock and operational “kit” to remain competitive.

There were also emerging reliability challenges. “It was a double whammy,” says Tammy Little, who served as interim production manager at the time. “We were beginning to wonder if we could make money as a business because of these fundamental flaws and the way we were set up. We had to figure out how to use the same asset and adjust it so that we weren’t dependent on those feedstocks.”

It was unclear if the changes could be made fast enough to turn the business around. It was a scary time. “We needed to take drastic steps,” Little says. “We needed to shut down one of our big olefins crackers because we were losing

BY SAM BARNES

POSITION: Site Manager COMPANY: Shell Norco

WHAT THEY DO: Shell’s Norco Manufacturing Complex supports both refining and chemicals facilities and is one of the largest and foremost petrochemical facilities in the U.S. The site strengthens its presence through community outreach, economic development, and a pledge to operate safely, reliably, and environmentally sound.

money every day. Both our operations and technical communities were working behind the scenes to put changes in place to improve the fundamental setup of our kit and improve our reliability.”

THE RESOLUTION

Little and her team opted to perform the capital improvements project simultaneously with a scheduled turnaround in the olefins cracker. It would take an unprecedented nine months.

“It was a ridiculous amount of time to have an asset down, but we were going to save money by executing the work,” she says.

“We would then restart it with a fundamentally different kit.”

The leadership team formulated the strategy, as well as identified the necessary capital work, process improvements and behavioral changes that needed to occur. They also worked to ensure that

employees understood the change in strategy and the role each would play. And it all needed to be done in a hurry. “Our motto was FINAO (Failure is Not an Option), and we even made T-shirts,” Little says. “After all, if we had failed, we all would have lost our jobs. When you shut down an entire business like this, you don’t just bounce back.”

In the end, the team successfully implemented reliability focused improvements and created better alignment along the organization.

“We turned it on a dime,” she adds. “It became a much more reliable and profitable business.”

THE TAKEAWAY

Little learned several lessons along the way. Most importantly, perhaps, the crisis helped shape her as a servant leader. “There were moments when it was unclear if we could do it,” Little

says. “I would be on the Causeway Bridge driving from my home on the Northshore and I would just break down in tears. I just felt so much responsibility.”

It became a pivotal moment. “It was then that I realized that a leader’s role is to enable the success of their workers, instead of them working to enable my success,” she adds. “It’s a subtle but important distinction. I realized that I had to let that go. It wasn’t about me; it was about them. They were counting on me and I couldn’t let them down.”

She also learned that being a leader requires a long-term view. “A leader should look at the functionality of today’s operations, but also what’s coming down the road. You need to know how to steer the ship proactively so that you’re not creating a future crisis.”

Embracing a “learner’s mindset” is also critically important. “No one bats a thousand,” she says. “There are going to be times when you have to learn from a setback and learn from your journey.”

Storage capacity has nearly doubled to accommodate up to 2,000 containers.

The successful public/private partnership between the Port of Greater Baton Rouge and SEACOR AMH has produced steady increases in the number of containers handled at the Port’s barge terminal.

As a result, a project to create nearly 4 acres of additional paved container storage capacity has been successfully completed. The yard is now capable of handling approximately 2,000 containers including containers measuring 40 feet, versus 20 feet.

Meet the Big Red Beast.

A 20% efficiency gain in container operations at the Port of Greater Baton Rouge is just one positive outcome of the Port’s new, deep-reach container stacker known as The Big Red Beast.

With a telescopic boom for stacking four containers high, shorter loading and unloading times have helped meet the increasing demand for container shipping services between Baton Rouge and New Orleans for area customers. The addition of the custom-made stacker is another component of the Port’s recent expansion of its successful container operations.

For more information, contact Greg Johnson at (225) 342-1660.