Chevron Phillips and Qatar Petroleum Explore $8 Billion Petrochemical Gulf Plant
Posted on 07/21/2019
Formed on July 1, 2000, Chevron Phillips Chemical Company LLC is a petrochemical company jointly owned by Chevron Corporation and Phillips 66. Chevron Phillips Chemical signed an agreement with Qatar Petroleum to construct a US$ 8 billion petrochemical plant along the U.S. Gulf Coast that will have an ethylene cracker. US$ 8 billion is a preliminary cost estimate. The plant will include a 2,000 KTA ethylene cracker and two 1,000 KTA high-density polyethylene units. The project is called the U.S. Gulf Coast II Petrochemical Project and will be 49% owned by Qatar Petroleum and 51% owned by Chevron Phillips Chemical. Chevron Phillips Chemical and Qatar Petroleum expect a final investment decision (FID) no later than 2021, followed by full funding and the award of engineering, procurement and construction (EPC) contracts, with targeted startup of the new facility in 2024.
Cracker plants use ethane to create ethylene. An ethane cracker takes ethane, a component of natural gas found and processes it —or ‘cracks’ it—into ethylene.
In June 2019, Chevron Phillips Chemical and Qatar Petroleum revealed a joint venture with plans to look at building a petrochemical plant in Qatar at the Ras Laffan Industrial City. The companies currently operate Qatar Chemical Company Ltd. and Qatar Chemical Company II Ltd., as well as the Ras Laffan Olefins Company.