Chevron Phillips Chemical (CPChem) said Monday that the two
polyethylene (PE) facilities planned as part of the
companys US Gulf Coast (USGC) petrochemical project will be
located on a site near the Sweeny facility in Old Ocean,
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.
In addition, constructing polyethylene infrastructure
at Old Ocean better positions the location for potential future
In March 2011, Chevron Phillips Chemical announced that
would pursue a project to construct a world-scale
ethane cracker and ethylene derivatives facilities in the USGC region.
The two new polyethylene facilities will each have a capacity
of 500,000 tpy (1.1 billion pounds) and utilize Chevron
Phillips Chemicals proprietary Loop Slurry Technology.
Chevron Phillips Chemical said it had reached a front-end
engineering and design (FEED) agreement with Jacobs Engineering
Group to design the polyethylene facilities.
Financial terms were not disclosed.
The company also announced Monday that it had reached an
agreement with Shaw Energy & Chemicals to design the
previously-announced 1.5 million tpy (3.3 billion pounds/year)
ethane cracker to be built at the companys 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
Chemicals 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, he continued.
This project would benefit our owners, employees,
local communities, customers, and suppliers.
In total, the companys US Gulf petrochemical project is expected to
create approximately 400 long-term direct jobs and 10,000
engineering and construction jobs, officials
The estimated completion date for all project work is 2017.
Chevron Phillips Chemical is jointly owned by Chevron and
Phillips 66, the downstream spinoff of ConocoPhillips.