15 September 2011 23:51 [Source: ICIS news]
By Brian Ford
HOUSTON (ICIS)--A new US Gulf coast cracker under contemplation by Chevron Phillips Chemical could be on line by the first quarter of 2017, CEO Peter Cella said on Thursday.
Cella said Chevron Phillips was continuing its study of the project, with plans to disclose the results by the end of this year. Chevron Phillips announced the study in March.
Chevron Phillips would announce whether it plans to proceed with the project and where it would be constructed. The announcement also would include the cracker’s technology and its size, Cella said.
“And first part of next year would be an important milestone for us to submit our permit and get what I call preliminary spending approval for the next phase of the project from our parents,” Cella said.
Chevron Phillips is a joint venture between Chevron and ConocoPhillips.
“We know that getting a permit for an investment like that [a cracker] can be a complex process, and we want to fulfil every permit requirement that is out there,” Cella continued. “I think if everything works according to the plan we envision today, we would be looking at a first quarter 2017 start-up.”
If given the go-ahead, the project would be located at one of Chevron Phillips’s existing sites on the US Gulf. In Texas, the company operates at Orange, Cedar Bayou, Pasadena, Sweeny and Port Arthur.
The study is driven by the new development of US shale gas reserves.
“There are jobs at stake, there’s economic growth at stake and that makes us optimistic that federal and state authorities will find a way to [help] develop this resource, and it will be available to us as a cracking feed,” Cella said.
Development of new olefins capacity in the US would be used primarily to meet domestic demand, he said.
For more on Chevron Phillips visit ICIS company intelligence
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