Chevron Phillips, Qatar Petroleum to Build $8B Petrochemical Plant

Noria news wires

Chevron Phillips Chemical Co. and Qatar Petroleum recently announced an agreement to jointly develop a new petrochemical plant in the Gulf Coast region of the United States. The U.S. Gulf Coast II Petrochemical Project (USGC II) will include a 2,000-kilo-tons-per-annum (KTA) ethylene cracker and two 1,000-KTA high-density polyethylene units.

Chevron Phillips Chemical will be the majority owner of the project and provide project management and oversight, as well as be responsible for the operation and management of the facility.

The preliminary cost of USGC II is approximately $8 billion. Both companies expect a final investment decision no later than 2021, followed by full funding and the awarding of engineering, procurement and construction contracts, with targeted startup of the new facility in 2024.

At peak construction, USGC II should support an estimated 9,000 construction jobs, with approximately 600 full-time positions once the plant is operational. The site’s location in the Gulf Coast region will offer direct access to the shale natural gas liquid reserves of the Permian Basin.

“Qatar Petroleum is already a terrific partner of Chevron Phillips Chemical on petrochemical plants in Qatar, and we look forward to expanding our relationship in the United States as we jointly seek to develop a new petrochemical facility along the U.S. Gulf Coast,” said Mark Lashier, Chevron Phillips Chemical president and CEO. “Qatar Petroleum’s financial strength, its commitment to safety as a core value and shared belief in our strategy to build facilities located close to competitive feedstocks make this an ideal relationship.”

In June 2019, Chevron Phillips Chemical and Qatar Petroleum announced a joint venture to establish a world-scale petrochemical plant in Qatar at the Ras Laffan Industrial City. The companies currently operate Qatar Chemical Co. and Qatar Chemical Co. II, as well as the Ras Laffan Olefins Co.

For more information, visit www.cpchem.com.

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