Chevron Phillips Chemical Plans Several Large Projects for 2008

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Researched by Industrial Info Resources (Sugar Land, Texas)--Chevron Phillips Chemical Company LLC (CPChem) (The Woodlands, Texas) recently began civil construction of an estimated $200 million expansion of its Borger, Texas, site. The project will be the company's second polyphenylene sulfide (PPS) ryton unit with an estimated production capacity of 22 million pounds per year. Jacobs Engineering Group Incorporated (Houston, Texas) and Zachry Construction Corporation (San Antonio, Texas) are providing engineering and construction services for this expansion, which is expected to be complete and online by early 2009.

This project marks the first of several expansion projects planned to get underway in the coming year. Industrial Info is currently tracking nearly $160 million or more planned by CPChem to begin construction during 2008 in the United States. Most of these projects are greater than $10 million each with a couple of very substantial investments. CPChem is evaluating options for the restart of two high-density polyethylene units in its Orange, Texas, plant site. Jacobs Engineering is expected to provide engineering, procurement and construction/management services for the estimated $50 million project that will include a major rebuild, revamp and restart of two previously idle loop reactors and all the supporting downstream process.

At least three additional projects with a value of more than $20 million are planned for the coming year, including potential expansion plans at three sites: Saint James, Louisiana; the Cedar Bayou complex in Baytown, Texas; and in Marietta, Ohio. These three projects alone could equal more than $75 million in capital project investments if approved and construction begins next year as planned.

CPChem is planning two large ethylene turnarounds for early next year, including its 1.5 billion-pound-per-year unit in Port Arthur, Texas, and the 1.5 billion-pound-per-year No. 33 ethylene unit in the Old Ocean, Texas, Sweeny plant. CPChem operates 10 chemical plant manufacturing sites in the United States employing nearly 3,000 people. These current and future investments reinforce the company's campaign to remain a leader in the olefins and chemicals marketplace.

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