NEW YORK (ICIS)--Chevron Phillips Chemical will defer a final investment decision (FID) on its joint venture US Gulf Coast petrochemicals project in light of uncertainty amid the coronavirus (Covid-19) pandemic, a spokesperson confirmed on Tuesday.
The confirmation followed comments made on 31 July by Phillips 66, one of the partners in the joint venture. Phillips 66 announced on its Q2 earnings release that Chevron Phillips Chemical was deferring an FID on the US Gulf Coast project as it monitors economic developments.
The company’s planned joint venture US Gulf Coast II petrochemicals project with Qatar Petroleum would include a 2m tonne/year ethane cracker and 2m tonnes/year of high density polyethylene (HDPE) capacity downstream.
Chevron Phillips Chemical had planned to make an FID in late 2020 or early 2021 with targeted start-up in 2024.
“As with other capital intensive activities, we are closely monitoring economic developments and moderating timing to preserve optionality on this project,” said a Chevron Phillips Chemical spokesperson.
“In light of uncertainty created in the wake of the Covid-19 pandemic, our company intends to defer a final investment decision while it revisits market conditions and project fundamentals,” he added.
Front end engineering design (FEED) on the project has been completed.
“Having completed the FEED work, we will collaborate closely with our joint venture partner Qatar Petroleum, our owner companies and other stakeholders on the appropriate timing for reaching a final investment decision,” said the spokesperson.
Adds background on Phillips 66 announcement, paragraph 2
Thumbnail image shows a lid made of polyethylene. Source: Al Greenwood
Click here to view the ICIS Coronavirus, oil price crash - impact on chemicals topic page.