Zeo Gas taking second look at PA for new plant site

Published 4:19 pm Thursday, May 19, 2016

 

A company that tried to build a start-up Greenfield plant in Port Arthur two years ago is eyeing the city once again with the hope that the second attempt will be prove fruitful both for the company and the city.

Zeo Gas representatives were in Port Arthur Tuesday to meet with members of the community, not only to provide information, but also to gauge the public’s interest and concerns.

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“What they wanted to do this time around was to be more transparent and to get the citizens response before they move forward,” Keith Richard, District 4 City Councilman, said.

Zeo Gas is currently shopping for a location to build a $1 billion dollar natural gas conversion plant. The company will use clean natural gas to produce methanol or ultra-low benzene and sulfur-free gasoline.

During construction the job is expected to bring 1,000 jobs and 100 fulltime permanent jobs upon completion.

In 2014 Zeo Gas sought a 100 percent, 10-year tax abatement at another location in Port Arthur but nixed its plans when Port Arthur City Council declined to approve the abatement terms.

“We always think everybody deserves a second chance and we hope to get that from the city,” Ken Brown, Zeo Gas senior vice president and project executive, said Thursday in a telephone interview.

Brown said the company was looking at other locations including sites in Jefferson County and Louisiana.

The Port Arthur site, off of Texas 73 at the old Arco plant now owned by GT Properties, is one that has the company excited, Brown said.

“The logistics are ideal for us,” Brown said. “I cannot emphasize enough how much I like the location in Port Arthur. The ability to get natural gas and the ability to transport the finished product make Port Arthur an ideal location.”

The site has a rail there already and access to a deep-water ship berth, plus every pipeline in the country passes through Port Arthur, Brown said.

The company’s current plans are scaled down from the $1.2 billion plant initially proposed to be built on property owned by the Doornbos family.

At the time, residents from the El Vista neighborhood expressed displeasure at the plant being built less than a mile from their community, while City Council was not pleased the company’s refusal to be contractually bound to hiring Port Arthur residents.

Brown said Thursday the company will make every effort to hire locally and to use local contractors.

Already, the company has met with Lamar State College – Port Arthur to discuss training programs for local citizens, Brown said.

Zeo Gas is planning to start construction in the first or second quarter of 2017. Barring any unforeseen delays, the plant is anticipated to take 30 months to complete.

Brown said the company does plan to ask for a tax abatement, but he did not know the terms.

The next step if for Zeo Gas representatives to make a presentation to City Council, Richard said.

“I strongly think this is something the city needs to consider,” Richard said. “It is a good clean operation; they want to be a safe neighbor and I think they are coming in a positive manner this time.”

The company has a new administrative team in place since the last time they approached the city, Richard said.

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