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CP Chem, QatarEnergy Pull Trigger on $8.5 Billion PE Plant

Expected to come online in 2026, the plant in Texas will produce Marlex polyethylene used in extrusion and packaging applications.

Posted by Staff

November 16, 2022

2 Min Read
two people walking in vacant lot
Image courtesy of CP Chem

Chevron Phillips Chemical Company LLC (CP Chem) and QatarEnergy announced today that they are proceeding with construction of an $8.5 billion integrated polymers facility in Orange, TX. The project, first announced in July 2019, is expected to create more than 500 full-time jobs and approximately 4,500 construction jobs and generate an estimated $50 billion for the community in residual economic impacts, said the news release. 

The companies have created a joint venture, Golden Triangle Polymers Co. LLC, named for the Golden Triangle region of Texas that includes the city of Orange. CP Chem owns a 51% equity share in the joint venture with QatarEnergy picking up the remaining 49%. 

“Chevron Phillips Chemical and QatarEnergy have collaborated for over 20 years on the assets we operate together in Qatar. We have a great relationship and a proven track record of operating these facilities safely and reliably,” said Chevron Phillips Chemical President and CEO Bruce Chinn. “Our products help make life better for billions of people every day, and they are part of a lower carbon future. This facility will help meet the growing demand for our products and improve the quality of life for the world’s growing global population.” 

His Excellency Mr. Saad Sherida Al-Kaabi, the Minister of State for Energy Affairs and President and CEO of QatarEnergy, said: “We are excited to announce taking the [final investment decision] on our largest petrochemical investment ever, highlighting QatarEnergy’s integrated position as a major player in the LNG and international exploration sectors, as well as being a global petrochemicals producer. This important project will complement QatarEnergy’s growing portfolio, both internationally as well as in the United States, and will help meet growing global demand for polymers. It builds on our long-term and successful partnership with Chevron Phillips Chemical, and we look forward to further collaborations in the future.” 

Once operational, the plant will produce Marlex polyethylene, used in the production of durable goods like pipe for natural gas and water delivery and recreational products such as kayaks and coolers. It is also used in essential packaging applications to protect and preserve food, helping prevent it from going to landfills, and keep medical supplies sterile.  

The plant is expected to begin operations in 2026 and will include a 2,080-KTA ethane cracker and two 1,000-KTA high-density polyethylene units. It will emit approximately 25% lower greenhouse gas emissions than similar facilities in the United States and Europe, said the companies, to support efforts to help enable a lower carbon future. CP Chem will manage engineering, procurement, and construction for the project and operate the facility after startup.

Construction of the Golden Triangle Polymers plant will begin immediately near CP Chem’s existing facility in Orange, located 113 miles east of Houston. CP Chem will manage engineering, procurement and construction for the project and operate the facility after startup.

The company in its various incarnations has had a presence in the Orange community since 1955. 

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