Proposed Formosa, Louisiana petrochemical complex financially unviable

The project makes very little economic sense at a time of market oversupply, lower petrochemical prices, strong competition for market share, and restrictive trade policies. Rising construction costs and a weakened bond rating are other indicators that the project is risky for investors.

In addition, the Formosa project faces environmental and regulatory challenges, including judicial findings of historic racial discrimination, and it continues to be strongly opposed by local community groups. IEEFA’s analysis urges the cancellation of “this ill-advised project, which should be abandoned in light of its weak fundamentals.”