New reservoir will fuel petrochemical expansion on Texas coast

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New reservoir will fuel petrochemical expansion on Texas coast
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Blocked in Louisiana, Formosa Plastics looks to grow around Lavaca Bay instead. But it and other interested industrial plants are waiting for more water.

Special needs child suffers cuts, bruises after he says teacher punched him in face for trying to perfect his homeworkRecommended VideosTexas regulators last month approved water rights for a new, 2,500-acre reservoir to meet the growing needs of chemical plants, refineries and other industries on the Gulf Coast.issued Feb. 23 by the Texas Commission on Environmental Quality authorizes the Lavaca-Navidad River Authority to divert up to 31 billion gallons per year from the Lavaca River.

“There is interest in our area to develop industrial plants,” he said. “That’s where the demand is going to come from.” Around Lavaca Bay, this mostly rural middle section of the Texas Gulf Coast still lacks the great conglomerations of chemical manufacturers that ring the water at Houston and Port Arthur to the north and Corpus Christi to the south. Here, a single actor reins supreme: Formosa Plastics, aTaiwanese company, and its 2,500-acre complex on Lavaca Bay, which turns Texas shale gas into the materials for common single-use plastics.

Formosa would get first rights to a portion of the water, Brzozowski said, but the details haven’t been negotiated.For Formosa, the opportunity for growth in Texas comes after legal challenges have stalled its plans for a new, $9.4 billionwith Texas regulators for permits to build a new hexene plant at Point Comfort and expand its adjacent polyethylene plant. The two projects together were approved in September 2023 to emit about 170 tons of regulated pollutants per year.

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