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Approval for USGC petrochemicals project

Hydrocarbon Engineering,

Chevron Phillips Chemical Company LP has received approval to execute the US Gulf Coast Petrochemicals project that was first announced in March 2011. The company has also awarded an engineering, procurement and construction (EPC) contract to a joint venture between JGC (USA), Inc. and Fluor Enterprises Inc. to execute the 1.5 milllion tpy ethane cracker portion of the project. An EPC contract has also been awarded to Gulf Coast Partners, a partnership between Technip USA Inc. and Zachry Industrial, Inc., to execute the two new polyethylene facilities, each with an annual capacity of 500 000 tpy.

Chevron Phillips comments

‘We remain in the first mover position a we take another critical step in executing a project that will benefit our customers, suppliers, local communities and existing and future employees,’ said Pete Cella, president and CEO of Chevron Phillips Company. ‘We are able to realise this important milestone thanks to continued strong growth in demand for our products, shale resource development in the US, and the tremendous support of our owners.’

Polyethylene production

The new polyethylene units will be capable of producing a wide variety of high and linear low density polyethylene products including bimodal and metallocene based polyethylene polymers. These facilities will be part of Chevron Phillips Chemical’s cutting edge metallocene technology and proprietary advanced dual loop bimodal technology. Also, as well as the bimodal and linear low density products, the flexibility of these units will allow for growth of current blow moulding, injection moulding and film grades offered by the company.

Project details

The ethane cracker will be constructed at Chevron Phillips Chemical’s Cedar Bayou plant in Baytown, Texas. The two polyethylene units will be built at a site in Old Ocean, Texas near the company’s Sweeny plant. The USGC project is expected to commence construction early next year and create 400 long term direct jobs and 10 000 engineering and construction jobs.

Preparation of the site is in progress, critical equipment has been ordered, supporting infrastructure expansion has begun and the company has executed a contract for the fabrication of the rail cars needed to supply products to the customers. ‘Overall, this project aligns perfectly with Chevron Phillips Chemical’s strategy of profitable growth, competitive advantage, operation excellence and organisation capability, and we look forward to a successful and safe startup in 2017,’ said Cella.

Technip and Zachry award details

Technip and Zachry Industrial, in a partnership called Gulf Coast Partners, will design and build the two polyethylene plants for the project. The scope of the work includes the design, supply and installation of two 500 000 tpy plants, together with the related offsites, utilities and rail yards. The two plants will be built adjacent to the existing Chevron Phillips Chemical facility at Old Ocean. Detailed design has started and onsite mobilisation will commence in the first half of 2014.

Fluor and JGC award details

Fluor and JGC Corporation’s 50/50 joint venture will provide the EPC for project consisting of the ethylene unit and associated offsite components to be built at Chevron Phillips Chemical’s existing Cedar Bayou complex. Fluor’s scope includes engineering and procurement for the outside battery limit scope as well as direct hire construction for the entire cracker project.

‘This project represents the first EPC opportunity to be executed by our new formed association with JCG,’ said Peter Oosterveer, president of Fluor’s Energy & Chemicals Group. ‘The US Gulf Coast continues to play a significant role in the chemicals market and our depth of resources and breadth of experience will create value for our client and support their success throughout the project.’

Edited from various sources by Claira Lloyd.

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