Chevron Phillips Chemical Company LP kicked off its $6 billion “Gulf Coast Petrochemicals Project” with an April 2 groundbreaking for its new ethane cracker facility at its Cedar Bayou Plant in Baytown.
The overall growth was sparked by the domestic shale boom. The effort continues in June with construction beginning on two, 500,000 metric ton capacity polyethylene facilities in Old Ocean by the Phillips 66 Sweeny Refinery.
Chevron Phillips CEO Pete Cella described the upcoming Cedar Bayou facility as the “first greenfield cracker project in this country in this decade.”
The Woodlands-based chemical company is a joint venture between San Ramon, Calif.-based Chevron Corp. (NYSE: CVX) and Houston’s Phillips 66 (NYSE: PSX). Phillips 66 is currently moving forward with$3 billion of its own new projects in Old Ocean and the Port of Freeport.
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The overall Chevron Phillips effort represents a $6 billion investment for a company with $10.5 billion in existing assets.
“It’s a huge investment for a company like this,” Cella said, all of which is “catalyzed” by the shale boom that is producing lots of ethane that serve as the “competitive feedstock