Following their agreement last month to build a petrochemicals complex in Qatar, the partners have now embarked on a similar project in the US Gulf Coast

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Image: Signing of the agreement in the White House for the USGC II petrochemical project. Photo: courtesy of Qatar Petroleum.

Chevron Phillips Chemical, which is a joint venture between Chevron and Phillips 66, has signed an agreement with Qatar Petroleum (QP) to develop the US Gulf Coast II Petrochemical Project (USGC II petrochemical project) with an estimated investment of about $8bn (£6.42bn).

Details of the USGC II petrochemical project

The petrochemical project to come up in the US Gulf Coast region will feature an ethylene cracker with a capacity of two million tons per annum, and two high-density polyethylene units, each having a capacity of one million tons per year.

According to Qatar Petroleum, the location of the USGC II petrochemical project gives it direct access to significant quantities of ethane produced from the Permian Basin and other US shale basins. The petrochemical facility is targeted to begin operations in 2024.

The Qatar-state owned company will hold a stake of 49% in the USGC II petrochemical complex, while Chevron Phillips Chemical will own the remaining stake of 51%. The Chevron and Phillips 66 joint venture will offer project management and oversight apart from taking up responsibility for the operation and management of the new petrochemical plant.

Qatar Petroleum said that the partners plan to award the engineering, procurement and construction (EPC) contracts for the USGC II petrochemical project in 2021.

Qatar Petroleum president and CEO Saad Sherida Al-Kaabi said: “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.”

Last month, Qatar Petroleum and Chevron Phillips Chemical signed a similar agreement to develop a petrochemicals complex in Qatar to produce ethylene and high-density polyethylene (HDPE). The new petrochemical project, which is expected to be built in Ras Laffan Industrial City, is targeted to begin operations in 2025, and will be majority owned by Qatar Petroleum (70%).

Chevron Phillips Chemical president and CEO Mark Lashier said: “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 United States as we jointly seek to develop a new petrochemical facility along the U.S. Gulf Coast.”