The new facility, which will be located at Chevron Phillips Chemical’s existing Cedar Bayou Plant in Baytown, US state of Texas.
It will be designed to use economical supplies of ethane feedstock derived from increased shale gas production.
Shaw’s Energy & Chemicals Group president, James Glass said this project represents a significant change in the ethylene marketplace as no US plants have been added in approximately ten years.
"The selection of Shaw’s technology for this project followed an evaluation of the top ethylene licensors in the world and our robust ultra selective conversion furnace and recovery system were key factors" added Glass.
In addition, Shaw has conducted studies and performed revamps at most of the company’s other sites.
The undisclosed value of the contract will be included in Shaw’s Energy & Chemicals segment’s backlog of unfilled orders in the first quarter of fiscal year 2012.
