Formosa Petrochemical is considering construction of a $9.4-billion petrochemical complex in St. James Parish, Louisiana, that would include a new ethylene cracker and several downstream units, news reports said on Tuesday.

A final investment decision (FID) is expected by mid-2016. If approved, construction would begin in 2016, with hiring to begin in 2018.

The project was announced by Louisiana governor Bobby Jundal and Formosa Petrochemical chairman Bao-Lang Chen.

The proposed project would be built on the west bank of the Mississippi river near the Gramercy bridge. It would be built in two phases, with the first phase including an ethylene cracker and derivatives plants, including high-density polyethylene (HDPE), low-density polyethylene (LDPE), ethylene glycol, and polypropylene. 

A second phase, for which construction would begin in 2022, would double the capacities of those plants. No plant capacities were announced.

"We believe strategic growth in petrochemicals in the future will be in the US, especially in Louisiana," said company chairman Bao-Lang Chen. "It is the right and perfect location for our company's next development base."

Louisiana offered the company an incentive package, including a $12-million grant to offset infrastructure costs. The project is expected to create 1,200 permanent jobs and 8,000 indirect jobs, according to the state of Louisiana.

Formosa Plastics, an affiliated Formosa company, is currently building a 1.15 million tpy ethylene plant at Point Comfort, Texas.