Chevron Phillips breaks ground on new Texas polyethylene projects

Chevron Phillips Chemical held its second groundbreaking ceremony for its US Gulf Coast (USGC) petrochemicals project at the construction site in Old Ocean, Texas, the company announced on Wednesday. 

The construction includes two world-scale polyethylene (PE) units that will each produce 500,000 tpy of plastic resin. 

With this groundbreaking, Chevron Phillips Chemical says it maintains its first-mover position within the petrochemicals industry to engineer and build world-scale ethylene and derivatives facilities in the US based upon the successful development of shale. 

The groundbreaking ceremony included local officials from the Cities of Sweeny and West Columbia, Brazoria county commissioners, Texas representative Dennis Bonnen and other state and federal elected representatives. In addition, officials from the owner companies of Chevron Phillips Chemical, Chevron and Phillips 66 were in attendance at the ceremony.

The resin from the polyethylene units will be used for a variety of products, including new flexible packaging options that extend the shelf life of fruits and vegetables, as well as in the creation of plastic piping, merchandise bags, and bottles. In addition to constructing the production facilities, 45 miles of railroad track will be installed on-site to hold and transport the output of these units.

The engineering, procurement and construction (EPC) phase of the two polyethylene units is being executed through Gulf Coast Partners, a partnership between Technip and Zachry Industrial.

"With the construction of this mega project, we will be in a position to better serve the growing needs of our customers around the globe," said Peter L. Cella, CEO of Chevron Phillips Chemical. 

"This entire project is made possible by advances in technology," he continued. "First, through innovations within the E&P industry to unlock oil and gas trapped in shale rock. Second, by the research and brilliance within Chevron Phillips Chemical to develop high-performance polyethylene resins."

The economic impact generated from the project includes over 400 long-term direct jobs and 10,000 engineering, construction and fabrication jobs, according to company officials.

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