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Chevron Phillips opens polyethylene units at $6bn USGC petrochemicals project

Chevron Phillips Chemical Company has commissioned the two polyethylene (PE) units of its $6bn US Gulf Coast (USGC) Petrochemicals Project.

Located in Old Ocean, Texas, the new PE assets will have capacity to produce up to 1,000,000 metric tons annually to meet the growing demand for polyethylene.

The units are designed to produce a wide variety of high quality polyethylene resins which range from metallocene linear low-density polyethylene (LLDPE) to bi-modal resins for film and pipe products.

Gulf Coast Partners, a partnership between Technip USA and Zachry Industrial, developed the PE units as part of a EPC contract awarded earlier.

Chevron Phillips Chemical president and CEO Mark Lashier said: “With these new assets in place, we can penetrate new markets to reach new customers, expand our global presence, and deliver on our growth commitments to our owner companies.”

The petrochemicals project also involves construction of an ethane cracker at Chevron's Cedar Bayou plant in Baytown. The ethane cracker is scheduled to be commissioned in the fourth quarter of 2017.

Engineering, procurement and construction (EPC) contract for the 1.5 million metric tons/year ethane cracker was awarded earlier to a joint venture between JGC and Fluor Enterprises.

Chevron downstream and chemicals executive vice-president Pierre Breber said: “CPChem is a critical part of Chevron’s investment strategy, and this Gulf Coast expansion project is an important piece of the U.S. energy value chain that has been revolutionized by shale resources.”

The USGC project is intended to serve growing demand for high quality plastics in industries including rigid and flexible packaging, industrial films, automotive, pressure pipe and conduit, and various consumer goods. 

Image: The polyethylene units in Old Ocean, Texas, US. Photo: courtesy of Chevron Phillips Chemical Company LP/Business Wire.