AFPM ‘12: CP Chem to decide site of Texas PE plants in 2 months

02 April 2012 20:22  [Source: ICIS news]

HOUSTON (ICIS)--Chevron Phillips Chemical (CP Chem) will decide within two months the location of two planned polyethylene plants in Texas, the company’s chief executive said on Monday.

The two 500,000 tonne/year plants could be located either next to CP Chem’s Sweeny ethylene facilities at Old Ocean, Texas, or at the company’s Cedar Bayou complex at Baytown, CEO Peter Cella said on the sidelines of the International Petrochemical Conference (IPC).

The PE plants are part of a $5bn (€3.75bn) project that includes a 1.5m tonne/year world-scale ethylene cracker at Cedar Bayou.

The company is considering a number of factors in deciding where to locate the PE plants, including costs, work force availability, the ease or difficulty of construction and local community incentives.

Integration into CP Chem’s existing operations is another big factor. “One of the benefits if we put it at Sweeny is it would integrate Sweeny," Cella said.

“Right now there are no derivative units at Sweeny, so 100% of the olefins produced at Sweeny are exported,” he continued. “If we put two derivative units there, [it would create] captive consumption of a good part of the ethylene that is produced there, which then frees up infrastructure and pipelines for other movements.”

The Sweeny crackers have a combined ethylene capacity of 1.9m tonnes/year.

CP Chem said on 26 March it plans to expand the natural gas liquids (NGL) fractionation capacity at its Sweeny facility.

Hosted by American Fuels & Petrochemicals Manufacturers (AFPM), the IPC continues through Tuesday.

($1 = €0.75)

By: Brian Ford
+1 713 525 2653

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