Qatar Petroleum and Chevron Phillips Chemical sign agreement for US mega-petrochemical plant
Qatar Petroleum (49%) and Chevron Phillips Chemical Company (51%) have unveiled plans to develop a new world-scale petrochemical project in the US Gulf Coast region.
With an estimated cost of around $8bn, the US Gulf Coast II petrochemical project (USGC II) will include a 2mn t/y ethylene cracker, reportedly the largest cracker in the world, and two 1mn t/y capacity high-density polyethylene units. Located in the US Gulf Coast region, the complex will have direct access to significant quantities of ethane produced by US shale basins, including the prolific Permian Basin.
The two companies have a long history of joint ventures, recently announcing a similarly-sized project to be built in Qatar. However, this is the first project to be located in the US. The proposed US project is part of a trend of Middle Eastern oil companies looking to diversify across regions and expand their footprint in the growing chemicals industry.