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13-08-2013

Chevron Phillips Chemical closer to building ethane cracker and polyethylene units

Chevron Phillips Chemical Company LP announced it received air permits from the Texas Commission on Environmental Quality (TCEQ) for its planned ethane cracker and polyethylene units. Additionally, Chevron Phillips Chemical received a greenhouse gas permit from Environmental Protection Agency (EPA) for the cracker earlier this year.

Pending final board approval to be sought later this year, the 1.5 million metric tons/year (3.3 billion pounds/year) ethane cracker would be built at the Chevron Phillips Chemical’s Cedar Bayou facility in Baytown, Texas, while the two new polyethylene facilities, each with an annual capacity of 500,000 metric tons (1.1 billion pounds), would be built on a site near the Chevron Phillips Chemical Sweeny facility in Old Ocean, Texas.

“We now have the requisite permits in hand to initiate construction of the cracker and polyethylene units and remain in the first mover position leading the way as the U.S. petrochemical industry announces significant expansions of capacity as a result of shale resource development,” said Ron Corn, vice president of corporate planning and development. “We are proud of the project’s progress since we first announced our feasibility study to construct a world-scale ethane cracker and derivatives facilities on the Texas Gulf Coast in March 2011.”

The ethane cracker and two polyethylene units, part of the company’s US Gulf Coast (USGC) Petrochemicals Project, are expected to create approximately 400 long-term direct jobs and 10,000 engineering and construction jobs. The estimated completion date for the USGC Petrochemicals Project is 2017.

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