Chevron Phillips and QatarEnergy to invest USD8.5 billion in new plant
Chevron Phillips Chemical Company LLC and QatarEnergy are proceeding with the construction of an USD8.5 billion integrated polymers facility in Orange, Texas, U.S.A.
The companies have made a positive final investment decision (FID) on the project and created a joint venture company, Golden Triangle Polymers Company LLC, named after the Golden Triangle region of Texas that includes the city of Orange.
Construction of the Golden Triangle Polymers plant will begin immediately near Chevron Phillips Chemical’s existing facility in Orange, located 113 miles east of Houston.
Chevron Phillips Chemical will own the majority share of the joint venture, with a 51% stake, while QatarEnergy will own 49%.
“Chevron Phillips Chemical and QatarEnergy have collaborated for over 20 years on the assets we operate together in Qatar. We have a great relationship and a proven track record of operating these facilities safely and reliably,” said Chevron Phillips Chemical President and CEO Bruce Chinn.
“We are excited to announce taking the FID on our largest petrochemical investment ever, highlighting QatarEnergy’s integrated position as a major player in the LNG and international exploration sectors, as well as being a global petrochemicals producer. This important project will complement QatarEnergy’s growing portfolio, both internationally as well as in the United States, and will help meet growing global demand for polymers. It builds on our long-term and successful partnership with Chevron Phillips Chemical, and we look forward to further collaborations in the future,” said His Excellency Saad Sherida Al-Kaabi, minister of State for Energy Affairs, and president and CEO of QatarEnergy.
The plant, which is expected to begin operations in 2026, will include a 2,080 kilo tonnes per annum (KTA) ethane cracker and two 1,000 KTA high-density polyethylene units. The project is targeting to have approximately 25% lower greenhouse gas emissions than similar facilities in the United States and Europe, supporting the company’s efforts to help enable a lower carbon future. Chevron Phillips Chemical will manage engineering, procurement and construction for the project and operate the facility after start-up.
Once operational, the plant will produce Marlex® polyethylene. Polyethylene is used in the production of durable goods like pipe for natural gas and water delivery and recreational products such as kayaks and coolers. It is also used in essential packaging applications to protect and preserve food, helping prevent it from going to landfills, and keep medical supplies sterile.