The Shaw Group has commenced front-end engineering design (FEED) work on a new Chevron Phillips Chemical grassroots ethylene plant, as part of a contract signed on 14 December 2011.
The 1.5million mtpa plant will be located at Chevron's existing Cedar Bayou plant in Baytown in the state of Texas, US.
Under the contract, Shaw will license its proprietary technology and provide a process design package for the project.
James Glass, Shaw energy and chemicals group president, said: "This plant will be among the first to use economical supplies of ethane feedstock derived from shale gas resources in the United States."
Shaw has also provided services to build Chevron Phillips' ethylene plants in the Middle East and cracker plants in Port Arthur and Sweeny, also in Texas.
In addition, Shaw has conducted studies, performed revamps and supplied furnaces at some of Chevron's other sites.
The undisclosed value of the contract will be included in Shaw's energy and chemicals segment backlog of unfilled orders, as work is authorised to proceed.
US-based Shaw Group provides engineering, procurement and construction services to chemical, piping, energy, fossil, nuclear and power industries.