Chevron Phillips Chemical and QatarEnergy to Build Integrated Polymers Facility on US Gulf Coast – Chemical Engineering

November 21, 2022 | By Mary Bailey

Chevron Phillips Chemical Co. LLC (CPChem; The Woodlands, TX) and QatarEnergy announced that they are moving forward with construction of an $8.5 billion integrated polymer plant in Orange, Texas, which is expected to create more than 500 full-time jobs and approximately 4,500 construction jobs and bring a residual economic impact to the community of 50 billion dollars.

The companies made a positive final investment decision on the project and formed a joint venture, Golden Triangle Polymers Company LLC, named after the Golden Triangle region of Texas, which includes the city of Orange. Chevron Phillips Chemical owns a 51% stake in the joint venture, while QatarEnergy owns 49%.

“Chevron Phillips Chemical and QatarEnergy have collaborated for more than 20 years on the assets we jointly manage in Qatar. We have an excellent relationship and a proven track record of operating these facilities safely and reliably,” said Chevron Phillips Chemical President and CEO Bruce Chinn. “Our products help improve the lives of billions of people every day, and they are part of a lower carbon future. This facility will help meet the growing demand for our products and improve the quality of life for the world’s growing population.”

His Excellency Mr. Saad Sheridah Al-Kaabi, Minister of State for Energy and President and CEO of QatarEnergy, said: “We are pleased to announce the acceptance of the FID for our largest petrochemical investment, underscoring QatarEnergy’s integrated position as a major player in the sectors LNG and international exploration, and is also a global producer of petrochemical products. This important project will complement QatarEnergy’s growing portfolio, both internationally and in the United States, and help meet growing global demand for polymers. It builds on our long-term and successful partnership with Chevron Phillips Chemical, and we look forward to further collaboration in the future.”

Once operational, the plant will produce Marlex polyethylene. Polyethylene is used in durable goods such as natural gas and water pipes and recreational products such as kayaks and coolers. It is also used in major packaging applications to protect and preserve food, helping prevent it from going to landfill and keeping medical supplies sterile.

The plant, which is expected to start operating in 2026, will include a 2,080,000 tonne per year ethane cracker and two 1,000,000 tonne per year HDPE units. The project aims to reduce greenhouse gas emissions by approximately 25% compared to similar facilities in the United States and Europe, supporting the company’s efforts to ensure a lower carbon future. Chevron Phillips Chemical will manage the design, procurement and construction for the project and operate the facility after start-up.

Construction of the Golden Triangle Polymers plant will begin immediately adjacent to Chevron Phillips Chemical’s existing facility in Orange, 113 miles east of Houston. Chevron Phillips Chemical and its predecessors have been present in the Orange community since 1955.

The design, procurement and construction of the units for the production of polyethylene will be carried out through ZDJV, a joint venture between Zachry Industrial Inc. (Zachry Group) and DL USA, Inc. The furnace portion of the design and procurement of the ethane cracking facility will be performed by T. EN Stone & Weber Process Technology, Inc., and PCL Industrial Construction Co. will provide construction services. The design, procurement and construction of additional ethane cracker components will be performed by JKJV, a JGC America, Inc. joint venture. and Kiewit Energy Group, Inc., as well as BMZ Third Coast Partners, a joint venture of Burns & McDonnell Engineering. Company, Inc. and Zachry Industrial, Inc., (Zachry Group) will perform the utilities and infrastructure scope of work. Emerson Process Management, LLLP is the prime contractor for the automation project, and WT Byler Co., Inc. manages heavy construction work throughout the facility. The project also includes a rail and transit station, with engineering, procurement and construction services being provided by WT Byler Co., Inc.

“We work hard to be good neighbors in the communities where we operate, and we are very grateful to the community members and public officials in Orange for their support in developing this project,” Chin said. “This facility will contribute to the social and economic fabric of the entire Golden Triangle region of Texas, bringing thousands of high-paying US jobs and billions of dollars in economic impact. We care deeply about the Orange community and are excited to bring jobs and resources to the region with safety and environmental performance at the forefront as always.”