Chevron Phillips plans to build ethane and ethylene facilities

Chevron Phillips Chemical Company is planning to establish new ethane cracker and ethylene derivatives facilities in the US Gulf Coast (USGC) region.

Chevron Phillips Chemical has awarded a contract to license Shaw Energy and Chemicals' proprietary technology and provide a process design package for a 1.5Mtpa (3.3bn pounds a year) ethane cracker.

The new ethylene unit will be built at Chevron's existing Cedar Bayou Plant in Baytown, Texas, US.

Chevron Phillips Chemical said it will utilise its proprietary technologies for the construction of two new polyethylene facilities, each producing 500,000tpa (1.1bn pounds a year).

Chevron Phillips announced that a final site selection decision for new polyethylene units, which would either be located at the Cedar Bayou facility or a site near to its Sweeny facility in Old Ocean, Texas, will be anticipated during the first quarter of 2012.

Chevron Phillips Chemical Company president and CEO Peter Cella said the owners and management are pleased to have taken these critical steps, and believe that executing this project will benefit their customers, suppliers, local communities and existing and future employees.

"It is our opinion that this project provides advantages including colocation of the cracker with our Cedar Bayou facility and other ancillary assets such as their broad feedstock, and ethylene pipeline and storage cavern networks, proximity to the expanding natural gas liquids hub in Mont Belvieu, and utilization of proprietary technology to meet the growing demand of our customers," Cella said.

"We are pleased that the development of shale gas resources in the US has set the stage for major petrochemical investment and job creation in our own backyard."

Cella is planning to submit air permit applications for the new cracker to the Environmental Protection Agency (EPA) greenhouse gas and Texas Commission on Environmental Quality (TCEQ) this week.

Cella said that the project is on track for final approvals in 2013.

The USGC Petrochemicals Project is expected to be complete in 2017.