Qatar Petroleum and Chevron Phillips Chemical Company have signed an agreement to develop a new world-scale petrochemical project in the US Gulf Coast.
The $8 billion US Gulf Coast II Petrochemical Project will include an ethylene cracker with a capacity of two million tonnes per annum, making it the largest cracker in the world. It will also include two high-density polyethylene units with a capacity of one million tonnes per annum each. The complex will be located in a region of the Gulf Coast where there is direct access to significant ethane quantities produced by US shale basins, including the Permian Basin.
Qatar Petroleum will own a 49% share in the project while Chevron Phillips Chemical will own the remaining 51% share and provide project management and oversight and be responsible for the operation and management of the facility.
The award of EPC contracts for the project is currently planned for 2021, with the new facility expected to start-up in 2024.
His Excellency Saad Sherida Al Kaabi, minister of state for energy affairs and president and CEO of Qatar Petroleum, says: 'This important project will help meet increasing global demand for petrochemicals market. It also showcases the momentum of Qatar Petroleum's international growth strategy, which has taken robust steps in various upstream and downstream activities in many parts of the world.'
Mark Lashier, president and CEO of Chevron Phillips Chemical, adds: 'Qatar Petroleum is already a terrific partner of Chevron Phillips Chemical on petrochemical ventures in Qatar and we look forward to expanding our relationship in the US as we jointly seek to develop a new petrochemical facility along the US Gulf Coast.'
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