WOODLANDS, Texas — Chevron Phillips Chemical Co. announced plans Wednesday to build a world-scale ethane cracker and ethylene derivatives facilities in the U.S. Gulf Coast region, according to a press release.
The company has executed agreements with Shaw Energy and Chemicals to design a 1.5 million metric tons/year (3.3 billion pounds/year) ethane cracker utilizing proprietary Shaw technology.
Chevron Phillips Chemical’s proprietary technologies would be utilized for the construction of two new polyethylene facilities, each with an annual capacity of 500,000 metric tons (1.1 billion pounds).
The new polyethylene units would be located either at the Cedar Bayou facility or a site nearby the Chevron Phillips Chemical Sweeny facility in Old Ocean, Texas.
A final site selection decision for these units is anticipated during the first quarter of 2012.
“The owners and management of Chevron Phillips Chemical are pleased to have taken these critical steps, and believe that executing this project will benefit our customers, suppliers, local communities and existing and future employees,” said Peter L. Cella, president and CEO of Chevron Phillips Chemical Co. “It is our opinion that this project offers unique advantages, including co-location of the cracker with our Cedar Bayou facility and other ancillary assets such as our broad feedstock and ethylene pipeline and storage cavern networks, proximity to the expanding natural gas liquids hub in Mont Belvieu and utilization of proprietary technology to meet the growing demand of our customers."