01 April 2014 18:43 [Source: ICIS news]
Correction: In the ICIS story headlined “AFPM '14: Tight US labour to cause delays, overruns − CP Chem CEO” dated 1 April 2014, the incorrect day was given for the company's ground-breaking ceremony. Please read in the fourth paragraph … ground-breaking ceremony on Wednesday … instead of … on Tuesday … A corrected story follows.
SAN ANTONIO, Texas (ICIS)--The shortage of skilled labour could cause delays and cost overruns at the several new US petrochemical plants being built, the CEO of Chevron Phillips Chemical said on Tuesday.
However, companies will not cancel projects as a result of labour shortages, said Peter Cella, CEO. He made his comments on the sidelines of the International Petrochemical Conference (IPC).
Chevron Phillips Chemical is among the several companies building new plants in the US, which will take advantage of the country's growing supply of low-cost natural gas liquids (NGLs).
Chevron Phillips, in fact, is holding a ground-breaking ceremony on Wednesday for its 1.5m tonne/year cracker in Cedar Bayou, Texas.
The Cedar Bayou cracker is among the 10 that companies thave announced. There are another 10 expansion projects.
The flood of construction projects will strain labour markets.
The IPC devoted a forum to discuss workforce development, and Cella was among the speakers.
The US Federal Reserve has noted that refiners and petrochemical companies are having a difficult time finding engineers and construction labourers for current and proposed plant expansions.
Hosted by the American Fuel & Petrochemical Manufacturers (AFPM), the IPC runs through Tuesday.
Additional reporting by Joseph Chang
The following lists the new projects that have been announced.
|Chevron Phillips Chemical||1.5m tonnes||HDPE, LLDPE||Cedar Bayou, Texas||mid-late 2017|
|ExxonMobil Chemical||1.5m tonnes||PE||Baytown, Texas||Late 2016|
|Dow Chemical||1.5m tonnes||LDPE, other PE, EPDM, elastomers, LAO (JV)||Freeport, Texas||2017|
|Sasol||1.5m tonnes||LDPE, LLDPE, EO, MEG, detergent alcohols||Lake Charles, Louisiana||2017|
|Formosa Plastics||1.0m tonnes||LDPE, MEG||Point Comfort, Texas||Q1 2017|
|Formosa Plastics||1.2m tonnes||NA||Louisiana||NA|
|Occidental Chemical/Mexichem||544,000 tonnes||EDC, VCM||Ingleside, Texas||2017|
|Shell||World-scale||PE, MEG||Monaca, Pennsylvania||2019-2020*|
|Odebrecht||World-scale||PE||Wood County, West Virginia||NA|
|INEOS||115,000 tonnes||NA||Chocolate Bayou, Texas||2014|
|Williams||273,000 tonnes||NA||Geismar, Louisiana||Apr 2014|
|Westlake Chemical||82,000 tonnes||NA||Calvert City, Kentucky||Q2 2014|
|LyondellBasell||363,000 tonnes||NA||La Porte, Texas||mid-2014|
|Chevron Phillips Chemical||91,000 tonnes||NA||Sweeny. Texas||2014|
|Westlake Chemical||113,000 tonnes||NA||Lake Charles, Louisiana||2014|
|LyondellBasell||113,000 tonnes||NA||Channelview, Texas||2015|
|LyondellBasell||363,000 tonnes||NA||Corpus Christi, Texas||Late 2015|
|Huntsman||19,300 tonnes||EO||Port Neches, Texas||NA|
|BASF Fina Petrochemicals||NA||NA||Port Athur, Texas||2014|
* ICIS estimate
|Source: Companies, ICIS analysis|
The following lists polyethylene projects.
|Sasol/INEOS||New unit||470,000 tonnes||HDPE||US||End 2015|
|Sasol||New unit||450,000 tonnes||LLDPE||Lake Charles, Louisiana||2016|
|Sasol||New unit||420,000 tonnes||LDPE||Lake Charles, Louisiana||NA|
|ExxonMobil||New units (2)||1.3m tonnes||PE (premium)||Mont Belvieu, Texas||Late 2016|
|Chevron Phillips||New units (2)||1m tonnes||HDPE, LLDPE, other||Sweeny, Texas||2017|
|Dow Chemical||New units||NA||PE (high-value), LDPE||Freeport, Texas||2017|
|Formosa Plastics||New unit||300,000 tonnes||LDPE||Point Comfort, Texas||2016|
|Shell||New units||NA||Unspec||Monaca, Pennsylvania||2019-2020*|
|Odebrecht||New units (3)||NA||Unspec||West Virginia||NA|
|LyondellBasell||Debottleneck||100,000 tonnes||Unspec||US||Early 2014|
|LyondellBasell||New unit||454,000 tonnes||Unspec||US||Late 2016|
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