Chevron Phillips Chemical Co. LLC (The Woodlands, TX) and Qatar Petroleum (Doha, Qatar) announced today that they have signed an agreement to jointly pursue development of a new petrochemical plant in the Gulf Coast region of the United States. The $8 billion U.S. Gulf Coast II Petrochemical Project (USGC II) will include a 2,000 KTA ethylene cracker and two 1,000 KTA high-density polyethylene units. The signing follows on the heels of a deal struck by the two companies last month to pursue the development, construction and operation of a petrochemicals complex in Qatar to produce ethylene and high-density polyethylene.
|Saad Sherida Al-Kaabi, Qatar’s Minister of State for Energy Affairs and President and CEO of Qatar Petroleum (left) and Mark Lashier, Chevron Phillips Chemical Company President and CEO, shake hands following the signing ceremony at the White House.|
The signing ceremony, hosted at the White House and witnessed by President Donald Trump and Sheikh Tamim bin Hamad Al Thani, Amir of the State of Qatar, included Chevron Phillips Chemical President and CEO Mark Lashier and Saad Sherida Al-Kaabi, Qatar’s Minister of State for Energy Affairs, the President and CEO of Qatar Petroleum. Chevron Corp. Chairman and CEO Michael Wirth and Phillips 66 Chairman and CEO Greg Garland also attended the ceremony.
The agreement makes Chevron Phillips Chemical majority owner (51%) with Qatar Petroleum owning the remaining 49% of the project. Chevron Phillips Chemical would provide project management and oversight and be responsible for the operation and management of the facility, said the press release. The preliminary cost of USGC II is approximately $8 billion. Chevron Phillips Chemical and Qatar Petroleum expect a final investment decision no later than 2021, followed by full funding and the award of engineering, procurement and construction contracts, with targeted startup of the new facility in 2024.
At peak construction, USGC II would support an estimated 9,000 construction jobs; approximately 600 full-time positions will be created once the facility is operational. The site will be located in the Gulf Coast region with direct access to the significant shale natural gas liquid reserves of the Permian Basin.
“We are very pleased to sign this agreement, which is the second of its kind in as many weeks, with our trusted partner, Chevron Phillips Chemical, to further cement the strong partnership between our two companies and to complement Qatar Petroleum’s international portfolio in the United States,” said Al-Kaabi. The United States “is a core growth area for us, as we believe it has great prospects and growth opportunities,” he added.
“Qatar Petroleum is already a terrific partner of Chevron Phillips Chemical on petrochemical plants in Qatar and we look forward to expanding our relationship in the United States as we jointly seek to develop a new petrochemical facility along the U.S. Gulf Coast,” said Lashier. “Qatar Petroleum’s financial strength, its commitment to safety as a core value and shared belief in our strategy to build facilities located close to competitive feedstocks make this an ideal relationship.”