Washington-Chevron Phillips Chemical Co., Ltd. and Qatar Petroleum Corporation announced that they have signed an agreement to jointly build a new petrochemical plant in the U.S. Gulf region. The US Gulf Coast Phase II Petrochemical Project (USGC II) will include a 2000 kta ethylene cracking unit and two 1000 kta high-density polyethylene units.
Qatar Petroleum Corporation announced that it has selected Chevron Phillips Chemical Co., Ltd. as its partner for its new petrochemical plant, which will be built in Ras Laffan Industrial City.
Chevron Phillips Chemical Company will be the main owner of the project, owning 51% of the shares, and Qatar Petroleum will own 49% of the project. Chevron Phillips Chemical Company will provide project management and supervision, and be responsible for the operation and management of the facility. USGC II’s initial investment is aboutFor 8 billion US dollars. Chevron Phillips Chemical Company and Qatar Petroleum Company hope to make a final investment decision (FID) before 2021, and then fully fund and award engineering, procurement and construction (EPC) contracts, and start targeted in 2024 New facilities.
In the peak period of construction, USGC II will support approximately 9,000 construction positions, and once it is put into operation, approximately 600 full-time positions. The site is located on the coast of the Gulf of Mexico, where it has direct access to important shale gas liquid reserves in the Permian Basin.
In June 2019, Chevron Phillips Chemical Company and Qatar Petroleum Company announced the establishment of a joint venture to build a world-class petrochemical plant in Ras Laffan Industrial City, Qatar. These companies currently operate Qatar Chemical Company Limited and Qatar Chemical Company II Limited, and Ras LaffanOlefin Company. These are among the safest and most successful assets in Chevron Philips Chemical's global portfolio.
Chevron Phillips Chemical, Qatar Petroleum announce plans to jointly develop US Gulf Coast petrochemical project
WASHINGTON, DC— Chevron Phillips Chemical Company LLC and Qatar Petroleum announced they have signed an agreement tojointly pursue the development of a new petrochemical plant in the Gulf Coast region of the United States. The US Gulf Coast II Petrochemical Project (USGC II) will include a 2,000 KTA ethylene cracker and two 1,000 KTA high-density polyethylene units.
Qatar Petroleum has announced the selection of Chevron Phillips Chemical Company LLC as its partner in a new Petrochemicals Complex, which willbe developed and constructed in Ras Laffan Industrial City. Photo: Qatar Petroleum
The signing ceremony, hosted at the White House and witnessed by President Donald Trump and His Highness, Sheikh Tamim bin Hamad Al Thani, Amir of the State of Qatar, included Chevron Phillips Chemical Presidentand CEO Mark Lashier and His Excellency Mr. Saad Sherida Al-Kaabi, Qatar's Minister of State for Energy Affairs, the President and CEO of Qatar Petroleum. Chevron Corporation Chairman and CEO Michael Wirth and Phillips 66 Chairman and CEO Greg Garland also attended the ceremony .
Chevron Phillips Chemical would be the majority owner with a 51 percent share and Qatar Petroleum would own 49 percent of the project. Chevron Phillips Chemical would provide project management and oversight and be responsible for the operation and management of the facility. The preliminary cost of USGC II is approximately $8 billion. Chevron Phillips Chemical and Qatar Petroleum expect a final investment decision (FID) no later than 2021, followed by full funding and the award of engineering, procurement and construction (EPC) contracts, with targeted startup of the new facility in 2024 .
At peak construction, USGC II would support an estimated 9,000 construction jobs and once operational, approximately 600 full time positions. The site's location would be in the Gulf Coast region, where there is direct access to the significant shale natural gas liquid reserves of the Permian Basin.
HisExcellency Mr. Saad Sherida Al-Kaabi said, “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, which is a core growth area for us as we believe it has great prospects and growth opportunities."
"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 US 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 feedstocksmake this an ideal relationship.”
In June 2019, Chevron Phillips Chemical and Qatar Petroleum announced a joint venture to pursue a world-scale petrochemical plant in Qatar at the Ras Laffan Industrial City. The companies currently operate Qatar Chemical Company Ltd. and Qatar Chemical Company II Ltd., as well as the Ras Laffan Olefins Company. These are some of the safest and most successful assets in Chevron Phillips Chemical’s global portfolio.