Chevron to study building of petrochem plant in Iraq

05 Jun '12

2 min read

The Texas, US-based Chevron Phillips Chemical Company LP, will evaluate the feasibility of setting up an integrated petrochemical plant in Iraq.

For the purpose, Chevron Phillips, a joint venture of Chevron Corporation (CVX) and ConocoPhillips (COP), has signed a letter of intent with the Iraqi Government.

Crude oil sales account for over 90 percent of Iraq's official income and the Government now wants to diversify into production of chemicals and other petrochemical by-products that are used in other industries, including textiles, as raw materials.

Currently, the country's crude oil output is on the rise after having stagnated for years during Saddan Hussein's rule. Iraq lacks facilities to use the by-products produced along with crude oil, as feedstock for petrochemicals. Hence, the by-products are mostly burned off.

In addition to feasibility for establishing a new petrochemical plant, Chevron Phillips Chemical would also examine the possibility of upgrading an existing facility in southern Basra province, said Hanaa al-Husseini, a spokeswoman for the Ministry of Industry and Minerals.

In a separate agreement inked in April this year, Shell Chemicals Ltd. agreed to undertake feasibility study of building a petrochemical project in Iraq, according to the Ministry.

Chevron Phillips Chemical owns three world-scale plants in Qatar, including Q-Chem, a world-scale ethylene, polyethylene and 1-hexene complex, and RLOC, one of the world's largest ethane crackers.

Fibre2fashion News Desk - India