UpdateUS CP Chem to build PE plants, ethane cracker in Texas

14 December 2011 16:11  [Source: ICIS news]

Chevron Phillips Chemical (CP Chem) will use the proprietary technology and a process design package from US engineering firm Shaw Group to build its 1.5m tonne/year ethane cracker in Texas, Shaw said on Wednesday. (adds updates throughout)

HOUSTON (ICIS)--Chevron Phillips Chemical (CP Chem) will build two polyethylene (PE) plants along with a 1.5m tonne/year ethane cracker in Texas, the company said on Wednesday.

The PE units will each have a capacity of 500,000 tonnes/year. CP Chem will use its own technology for the PE plants. They will be either at the Cedar Bayou facility in Baytown or a site nearby the CP Chem Sweeny facility in Old Ocean, Texas, the company said.

A final site selection decision for these units is anticipated during the first quarter of 2012, the company said.

CP Chem will build the ethane cracker with technology and a process-design package from US engineering firm Shaw Group.

CP Chem announced plans about the cracker in March, during the National Petrochemical & Refiners Association (NPRA) meeting in San Antonio.

Later, Peter Cella, the chief executive of CP Chem, said the company has started permitting process for the facility and plans to build the plant at its Cedar Bayou complex in Baytown, Texas.

Cella made the announcement at the sixth annual GPCA (Gulf Petrochemicals & Chemicals Association) conference.

The plant will be designed to use “economical supplies of ethane feedstock derived from increased shale gas production”, Shaw said.

Neither company disclosed the cost of the plant. The facility should be complete by 2017, CP Chem said.

“This project represents a significant change in the ethylene marketplace as no US plants have been added in approximately ten years,” said James Glass, president of Shaw’s energy and chemicals group.

Additional reporting by William Lemos

For more on CP Chem visit ICIS company intelligence
For more on ethylene or PE visit ICIS chemical intelligence

By: Bobbie Clark
+1 713 525 2653

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