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Chevron Phillips to build two polyethylene plants in Texas

03
May '12
Chevron Phillips Chemical Company LP announced the two polyethylene facilities planned as part of the company's U.S. Gulf Coast (USGC) Petrochemicals Project, would be located on a site nearby the Chevron Phillips Chemical Sweeny facility in Old Ocean, Texas.

“These polyethylene facilities would be the first ethylene derivative units to be constructed in Old Ocean and as such, they offer an exciting opportunity to our employees, the surrounding Brazoria County community, and those businesses that would service these new facilities,” said Peter L. Cella, president and chief executive officer.

“In addition, constructing polyethylene infrastructure at Old Ocean better positions the location for potential future investments. We would like to acknowledge the dedicated efforts of the Brazoria County community leaders whose support for our project was instrumental in the decision to choose Old Ocean.”

In March 2011, Chevron Phillips Chemical announced that it planned to pursue a project to construct a world-scale ethane cracker and ethylene derivatives facilities in the USGC region.

The two new polyethylene facilities would each have an annual capacity of 500,000 metric tons (1.1 billion pounds) and would utilize Chevron Phillips Chemical's proprietary Loop Slurry Technology.

In addition, the company also announced today that it has executed a Front-End Engineering and Design (FEED) agreement with Jacobs Engineering Group, Inc. to design the polyethylene facilities. Furthermore, the company also announced that it has executed a FEED agreement with Shaw Energy & Chemicals to design the previously announced 1.5 million metric tons/year (3.3 billion pounds/year) ethane cracker that would be located at Chevron Phillips Chemical's existing Cedar Bayou facility in Baytown, Texas.

“The significant steps taken since our initial announcement of a feasibility study only one year ago reflect a strong endorsement of the USGC Petrochemicals Project by Chevron Phillips Chemical's owners and management,” said Cella. “We continue to believe that synergy with our existing Gulf Coast operations, proximity to feedstock supply, and application of proprietary technologies uniquely positions our company to capitalize on the opportunity that development of abundant shale resources affords the United States, and in particular the Gulf Coast region. This project would benefit our owners, employees, local communities, customers, and suppliers.”

In total, the USGC Petrochemicals Project is expected to create approximately 400 long-term direct jobs and 10,000 engineering and construction jobs.

The estimated completion date for the USGC Petrochemicals Project is 2017.

Chevron Phillips Chemical Company LP


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