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The Woodlands-based Chevron Phillips Chemical has inked a deal with Qatar Petroleum to develop an $8 billion plant on the Gulf Coast in a project that will generate thousands of construction jobs and further solidify the region as a petrochemical and plastics hub.
Called "The US Gulf Coast II Petrochemical Project", it’s the second major project The Woodlands-based Chevron Phillips has undertaken in the region in the past two years after it recently opened its new ethane cracker in Cedar Bayou. The Gulf Coast is in the midst of a second wave of petrochemical projects as major oil and chemical companies are hoping to further capitalize on the growing supply of natural gas feed stock from West Texas.
Chevron Phillips Chemical Company LLC and Qatar Petroleum signed an agreement to pursue the joint development of a new petrochemical plant in the Gulf Coast region of the United States, where there is direct access to the significant shale natural gas liquid reserves of the Permian Basin. The US Gulf Coast II Petrochemical Project (USGC II) will include a 2,000 KTA ethylene cracker and two 1,000 KTA high-density polyethylene units.
So the partners have not yet named a specific site within the Gulf Coast region for the project, though they did say in the press release that the siting will give the project access to natural gas liquids feedstocks out of the Permian Basin in Texas.
The U.S. Gulf Coast II Petrochemical Project would build a new petrochemical plant on the Gulf Coast, according to a July 9 press release. It would be majority-owned, managed and operated by Chevron Phillips Chemical Company LLC, which would split ownership with Qatar Petroleum 51%-49%.
Chevron Phillips Chemical and Qatar Petroleum expect a final investment decision no later than 2021, followed by full funding and the award of engineering, procurement and construction contracts, with targeted startup of the new facility in 2024.
The project could create about 9,000 construction jobs and about 600 full-time permanent jobs, according to the companies.
"These are the kinds of positions where someone can come out of high school, can get a two-year degree and earn $100,000 a year," said Mark Lashier, CEO of Chevron Phillips in interview. "When you think about monetizing these great resources in Texas, much more of this material will be exported, adding to global trade. We're helping the trade imbalance in the U.S. and creating jobs."
The signing ceremony was 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.
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Called "The US Gulf Coast II Petrochemical Project", it’s the second major project The Woodlands-based Chevron Phillips has undertaken in the region in the past two years after it recently opened its new ethane cracker in Cedar Bayou. The Gulf Coast is in the midst of a second wave of petrochemical projects as major oil and chemical companies are hoping to further capitalize on the growing supply of natural gas feed stock from West Texas.
Chevron Phillips Chemical Company LLC and Qatar Petroleum signed an agreement to pursue the joint development of a new petrochemical plant in the Gulf Coast region of the United States, where there is direct access to the significant shale natural gas liquid reserves of the Permian Basin. The US Gulf Coast II Petrochemical Project (USGC II) will include a 2,000 KTA ethylene cracker and two 1,000 KTA high-density polyethylene units.
So the partners have not yet named a specific site within the Gulf Coast region for the project, though they did say in the press release that the siting will give the project access to natural gas liquids feedstocks out of the Permian Basin in Texas.
The U.S. Gulf Coast II Petrochemical Project would build a new petrochemical plant on the Gulf Coast, according to a July 9 press release. It would be majority-owned, managed and operated by Chevron Phillips Chemical Company LLC, which would split ownership with Qatar Petroleum 51%-49%.
Chevron Phillips Chemical and Qatar Petroleum expect a final investment decision no later than 2021, followed by full funding and the award of engineering, procurement and construction contracts, with targeted startup of the new facility in 2024.
The project could create about 9,000 construction jobs and about 600 full-time permanent jobs, according to the companies.
"These are the kinds of positions where someone can come out of high school, can get a two-year degree and earn $100,000 a year," said Mark Lashier, CEO of Chevron Phillips in interview. "When you think about monetizing these great resources in Texas, much more of this material will be exported, adding to global trade. We're helping the trade imbalance in the U.S. and creating jobs."
The signing ceremony was 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.
Image src:
houstonchronicle.com