Chevron Phillips Chemical and Qatar Petroleum have signed an agreement to jointly develop a new petrochemical plant along the US Gulf coast region, media reports said. The US Gulf Coast II Petrochemical project is the second deal between both companies estimated at $8 billion.
Chevron Phillips Chemical will hold a 51 percent stake and Qatar Petroleum will acquire the remaining 49 percent stake in the new venture. Chevron Phillips Chemical is a joint venture between Chevron and Phillips. Both companies expect a final investment decision by 2021.
The project will be constructed along the Gulf Coast region where there is good access to the shale natural gas liquid reserves, the press release said. It will include a 2,000 KTA ethylene cracker and two 1,000 KTA high-density polyethylene units.
Chevron Phillips Chemical will take charge of project management and will be responsible for the facility’s operation. According to the press release, the project construction would support an estimated 9,000 construction jobs, and offer 600 full-time positions once operations commence.
Chevron Phillips Chemical President and CEO Mark Lashier, said, “Qatar Petroleum is already a terrific partner of Chevron Phillips Chemical on petrochemical plants in Qatar and we look forward to expanding our relationship in the United States as we jointly seek to develop a new petrochemical facility along the U.S. Gulf Coast. Qatar Petroleum’s financial strength, its commitment to safety as a core value and shared belief in our strategy to build facilities located close to competitive feedstocks make this an ideal relationship.”
Last month, Chevron Phillips Chemical and Qatar Petroleum announced a joint venture to establish a petrochemical plant in Qatar at the Ras Laffan Industrial City.