Chevron Phillips Chemical and Qatar Petroleum to develop $8B petrochemical project in Gulf Coast region
Chevron Phillips Chemical Company LLC and Qatar Petroleum signed an agreement to pursue joint development of a new petrochemical plant in the Gulf Coast region of the United States, where there is direct access to the significant shale natural gas liquid reserves of the Permian Basin. The US Gulf Coast II Petrochemical Project (USGC II) will include a 2,000 KTA ethylene cracker and two 1,000 KTA high-density polyethylene units.
The signing ceremony was hosted at the White House and witnessed by President Donald Trump and His Highness, Sheikh Tamim bin Hamad Al Thani, Amir of the State of Qatar.
Chevron Phillips Chemical would be the majority owner with a 51% share and Qatar Petroleum would own 49% of the project. Chevron Phillips Chemical would provide project management and oversight and be responsible for the operation and management of the facility. The preliminary cost of USGC II is approximately $8 billion. Chevron Phillips Chemical and Qatar Petroleum expect a final investment decision (FID) no later than 2021, followed by full funding and the award of engineering, procurement and construction (EPC) contracts, with targeted startup of the new facility in 2024.
In June 2019, Chevron Phillips Chemical and Qatar Petroleum announced a joint venture to pursue a world-scale petrochemical plant in Qatar at the Ras Laffan Industrial City. The companies currently operate Qatar Chemical Company Ltd. and Qatar Chemical Company II Ltd., as well as the Ras Laffan Olefins Company.