Total is anticipated to have a 50% stake in the new JV project.

The joint venture will be responsible for building a new one Mt/y per ton ethane steam cracker in Port Arthur of Texas, as well as new 625 kt/y Borstar polyethylene plant on the Bayport site of Texas. 

Expected to be established in late 2017, the joint venture will also build Total’s existing polyethylene 400 kt/y plant in Bayport of Texas.

With a capacity to create around 1,500 jobs during engineering and construction phase, the new cracker is expected to be operational in 2020.

CB&I has secured engineering, procurement and construction (EPC) contract (EPC) from Total for the ethane steam cracker. The new cracker is being constructed beside Port Arthur refinery and Total/BASF existing steam cracker.

Total chairman and CEO Patrick Pouyanné said: “After significant investments in US LNG and US shale gas in 2016, this almost two billion dollar investment signals our determination to strengthen our presence in the US, where we have operated for 60 years and have more than 6,000 employees.

“We want to take advantage of the business-friendly environment to contribute to making American petrochemicals even greater. By joining forces with Borealis and Nova, we aim to create a major player in the US polyethylene market.”

Total operates Port Arthur refinery in Texas, as well as owns 40% stake in a condensate splitter that holds a total capacity of 202,000 barrels per day.

Last month, Total agreed to divest stakes and transfer operatorship in various mature assets in Gabon to Perenco for about $350m, as part of its efforts to optimize its operations.