Chevron Phillips Chemical Company LLC (The Woodlands, Tex.; www.cpchem.com) and Qatar Petroleum (Doha, Qatar; www.qp.com.qa) today announced they have signed an agreement to jointly pursue development of 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 KTA ethylene cracker and two 1,000 KTA high-density polyethylene units.
The signing ceremony, hosted at the White House and witnessed by President Donald Trump and His Highness, Sheikh Tamim bin Hamad Al Thani, Amir of the State of Qatar, included Chevron Phillips Chemical President and CEO Mark Lashier and His Excellency Saad Sherida Al-Kaabi, Qatar’s Minister of State for Energy Affairs, the President and CEO of Qatar Petroleum. Chevron Corporation Chairman and CEO Michael Wirth and Phillips 66 Chairman and CEO Greg Garland also attended the ceremony.
Chevron Phillips Chemical would be the majority owner, with a 51 percent share and Qatar Petroleum would own 49 percent of the project. Chevron Phillips Chemical would provide project management and oversight and be responsible for the operation and management of the facility. The preliminary cost of USGC II is approximately $8 billion. 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.
At peak construction, USGC II would support an estimated 9,000 construction jobs and once operational, approximately 600 full-time positions. The site’s location would be in the Gulf Coast region, where there is direct access to the significant shale natural gas liquid reserves of the Permian Basin.
In June 2019, Chevron Phillips Chemical and Qatar Petroleum announced a joint venture to pursue a world-scale 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. These are some of the safest and most successful assets in Chevron Phillips Chemical’s global portfolio.
Chevron Phillips Chemical Company LLC is one of the world’s top producers of olefins and polyolefins and a leading supplier of aromatics, alpha olefins, styrenics, specialty chemicals, plastic piping and polymer resins. Chevron Phillips Chemical Company LLC is equally owned indirectly by Chevron Corporation and Phillips 66.
Qatar Petroleum is an integrated national oil corporation responsible for the sustainable development of the oil and gas industry in the State of Qatar and beyond.