Chevron Phillips Chemical’s USGC Petrochemicals project begins operations

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Energy Industry News : Chevron Phillips Chemical Company says that the two polyethylene units of its $6 billion USGC Petrochemicals project in at Old Ocean, Texas have started operation.

The polyethylene units of the US Gulf Coast Petrochemicals Project will have a production capacity of up to 1,000,000 metric tons, and are expected to cater to the growing worldwide demand for plastic products.

According to Chevron Phillips Chemical Company, the polyethylene units will produce a broad range of high quality polyethylene resins. These would range from metallocene linear low-density polyethylene (LLDPE) to bi-modal resins for film and pipe products.

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Commenting on the opening of the polyethylene units of the USGC Petrochemicals project, Mark Lashier, the president and CEO Chevron Phillips Chemical Company, said: “With these new assets in place, we can penetrate new markets to reach new customers, expand our global presence, and deliver on our growth commitments to our owner companies.”

Polyethylene units in Old Ocean of USGC Petrochemicals project of Chevron Phillips Chemical Company

Polyethylene units in Old Ocean of USGC Petrochemicals project of Chevron Phillips Chemical Company. Photo: Business Wire

The USGC Petrochemicals project was first announced in 2011 and three years later it broke ground. It features an ethane cracker located at Cedar Bayou with a production capacity of 1.5 million metric tonnes per year of ethylene. The ethane cracker is slated to be put into operation in the fourth quarter of this year.

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Each of the two polyethylene units of the USGC Petrochemicals project have an annual production capacity of 500,000 metric tons of resin.

Pierre Breber, the executive vice president for Chevron Downstream and Chemicals, said: “CPChem is a critical part of Chevron’s investment strategy, and this Gulf Coast expansion project is an important piece of the U.S. energy value chain that has been revolutionized by shale resources.

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“The two new polyethylene units enable CPChem to meet the demand for a wide variety of valuable products.”

Headquartered in The Woodlands, Texas, Chevron Phillips Chemical Company is owned 50/50 by Chevron U.S.A. and Phillips 66’s wholly-owned subsidiaries.

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