Chevron Phillips Chemical and QatarEnergy on Nov. 16 said they have reached a final investment decision to build an $8.5 billion polymers facility in Orange, Texas.
The agreement is part of a larger move by oil companies preparing for a future in which oil is used less to produce energy but still indispensable for making non‐energy goods such as plastics, a type of polymer.
The facility is expected to be operational in 2026. It will make polyethylene, the most common plastic, for production of goods from coolers to water or gas pipes and packaging.
In its road map to reach net-zero emissions by 2050, the International Energy Agency says the world would still need about 25% of today's oil production for plastics, goods and other chemical applications.
The companies are already partners in Qatar. The pair created a joint venture company for the Texas project, Golden Triangle Polymers Company LLC, in which Chevron Phillips has a 51% equity stake while QatarEnergy owns the rest.
This is Qatar's largest petrochemical investment ever, says the energy minister and CEO of QatarEnergy, Saad Sherida Al-Kaabi.
"This important project will complement QatarEnergy’s growing portfolio, both internationally as well as in the United States," Al-Kaabi said in a statement.
Chevron Phillips Chemical is equally owned by Chevron U.S.A. Inc. and Phillips 66 Co. and is headquartered in The Woodlands, Texas.
The company said the plant is expected to create more than 500 full-time jobs and approximately 4,500 construction jobs.
Recommended Reading
Oxy’s Hollub Drills Down on CrownRock Deal, More M&A, Net-zero Oil
2024-11-01 - Vicki Hollub is leading Occidental Petroleum through the M&A wave while pioneering oil and gas in EOR and DAC towards the goal of net-zero oil.
Exxon, Chevron Beat 3Q Estimates, Output Boosts Results
2024-11-01 - Oil giants Chevron and Exxon Mobil reported mixed results for the third quarter, with both companies surpassing Wall Street expectations despite facing different challenges.
OMS Energy Files for IPO, Reports Revenue Growth
2024-11-06 - Singapore-based OMS Energy, a wellhead system manufacturer, has not yet determined its price range and number of shares.
Record NGL Volumes Earn Targa $1.07B in Profits in 3Q
2024-11-06 - Targa Resources reported record NGL transportation and fractionation volumes in the Permian Basin, where associated natural gas production continues to rise.
ConocoPhillips Hits Permian, Eagle Ford Records as Marathon Closing Nears
2024-11-01 - ConocoPhillips anticipates closing its $17.1 billion acquisition of Marathon Oil before year-end, adding assets in the Eagle Ford, the Bakken and the Permian Basin.
Comments
Add new comment
This conversation is moderated according to Hart Energy community rules. Please read the rules before joining the discussion. If you’re experiencing any technical problems, please contact our customer care team.