Chevron Phillips Chemical will go ahead with construction of its proposed ethane cracker and polyethylene units following air permits from the Texas Commission on Environmental Quality (TCEQ), US.
Earlier this year the company received a greenhouse gas approval from the Environmental Protection Agency (EPA) for the cracker.
Built at Chevron Phillips Chemical's Cedar Bayou facility in Baytown, Texas, the ethane cracker will have a manufacturing capacity of 1.5 million mt per year (3.3 billion pounds per year).
The two new polyethylene facilities will be constructed on a site near the Chevron Phillips Chemical Sweeny facility in Old Ocean, Texas, and each facility will have a production capacity of 500,000mt per year (1.1 billion pounds).
Chevron Phillips Chemical corporate planning and development vice president Ron Corn said the company has the requisite permits to initiate construction of the cracker and polyethylene units and remain in the first mover position, leading the way as the US petrochemical industry announces significant expansions of capacity as a result of shale resource 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," Corn added.
The ethane cracker and two polyethylene units are part of the company's US Gulf Coast (USGC) Petrochemicals Project, which is slated for 2017 completion.
The company said pending final board approval will be sought later this year.
The USGC Petrochemicals Project is expected to create around 400 long-term direct jobs and 10,000 engineering and construction jobs.