Chevron Phillips Chemical Company and QatarEnergy are going ahead with the construction of an $8.5bn integrated polymers facility in Orange, Texas.
This facility is expected to create over 500 full-time jobs and around 4,500 construction jobs and generate an estimated economic impact of $50bn.
The firms have made a positive final investment decision on the project.
They created a joint venture company, Golden Triangle Polymers Company, in which Chevron Phillips Chemical owns a 51% stake while QatarEnergy owns 49% interest.
Chevron Phillips Chemical president and CEO Bruce Chinn said: “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.
“Our products help make life better for billions of people every day, and they are part of a lower carbon future. This facility will help meet the growing demand for our products and improve the quality of life for the world’s growing global population.”
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Qatar Minister of State for Energy Affairs, and QatarEnergy president and CEO Saad Sherida Al-Kaabi said: “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.”
Once operational, the plant will produce Marlex polyethylene.
Polyethylene is used in the production of durable goods, such as pipe for natural gas and water delivery and recreational products such as coolers.
The facility is expected to begin operations in 2026.
It will feature a 2,080 KTA ethane cracker and two 1,000 KTA high-density polyethylene units.
The project is aiming to have around 25% lower greenhouse gas emissions than similar facilities in the US and Europe.
Chevron Phillips Chemical will handle engineering, procurement and construction for the project and operate the facility following start-up.
Construction of the Golden Triangle Polymers plant will commence immediately. It is close to Chevron Phillips Chemical’s current facility in Orange, located 113 miles east of Houston.
The engineering, procurement and construction of the polyethylene units will be carried out through ZDJV, a joint venture between Zachry Industrial (Zachry Group) and DL USA.
The furnace part of the ethane cracker engineering and procurement will be undertaken by T.EN Stone & Weber Process Technology, while PCL Industrial Construction Co. will deliver construction services.
Engineering, procurement and construction for the further portions of the ethane cracker will be carried out by JKJV, a joint venture between JGC America and Kiewit Energy Group.
BMZ Third Coast Partners, a joint venture between Burns & McDonnell Engineering Company and Zachry Industrial will execute the utilities and infrastructure scope of work.
Emerson Process Management has been appointed the main automation contractor for the project, and W.T. Byler Co is managing heavy civil work for the complete site.
The project also features a rail and storage-in-transit yard, with engineering, procurement and construction services offered by W.T. Byler Co.
Image: Golden Triangle Polymers construction site in Orange, Texas. Credit: Business Wire/ Chevron Phillips Chemical Company/QatarEnergy.