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Released March 13, 2018 | SUGAR LAND
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Researched by Industrial Info Resources (Sugar Land, Texas)--Chevron Phillips Chemical Company LP (CP Chem) (The Woodlands, Texas) announced Monday it has started up an ethylene production unit at the company's Cedar Bayou facility in Baytown, Texas. CP Chem is jointly owned by Chevron Corporation (NYSE:CVX) (San Ramon, California) and Phillips 66 (NYSE:PSX) (Houston, Texas). The unit will have a production capacity of 3.3 billion pounds per year.
Construction on the unit began in the first half of 2014, with Fluor Corporation (NYSE:FLR) (Irving, Texas) providing engineering, procurement and construction (EPC). Construction was somewhat delayed due to the effects of Hurricane Harvey, which struck the Texas Gulf Coast last August. For more information, see Industrial Info's project report.
Trey Hamblet, Industrial Info's vice president of research for the Chemical Processing Industry, said, "Industrial Info will begin tracking the operational status of this new unit as part of our PetChem Live tools effective immediately. This unit brings the total installed capacity of ethylene in the U.S. and Canada market to more than 83 billion pounds per year."
The ethylene will feed CP Chem's downstream units, which include two polyethylene units in Old Ocean, Texas. Construction on the polyethylene units began in early 2014 and was completed last fall. The units have a combined production capacity of 2.2 billion pounds per year. Jacobs Engineering Group Incorporated (NYSE:JEC) (Dallas, Texas) performed design work on the project, with Zachry Industrial Incorporated (San Antonio, Texas) acting as general contractor. For more information, see Industrial Info's project reports on Polyethylene Unit 1 and Polyethylene Unit 2 in Old Ocean and November 13, 2017, article - Chevron Phillips Chemical Celebrates Startup of Texas Polyethylene Units.
The ethylene and polyethylene units form the bulk of CP Chem's U.S. Gulf Coast Petrochemicals Project, which the company announced in 2011. Mark Lashier, chief executive officer of CP Chem, said, "Construction of these world-scale assets has been ongoing since 2014, and today, we are entering a new era of growth. With global demand for ethylene and polyethylene poised for sustained long-term growth, the U.S. Gulf Coast Petrochemicals Project will allow Chevron Phillips Chemical to deliver high-quality products to our customers across the country and around the globe."
The completion of the ethylene unit comes as part of a wave of ethylene units begun as chemical companies rushed to take advantage of cheap, abundant natural gas produced from shale formations in the U.S. In February, Exxon Mobil Corporation (NYSE:XOM) (ExxonMobil) (Irving, Texas) announced that it had begun commissioning of a 1.5 million-ton-per-year ethylene unit in Baytown, which also began construction in 2014. Like CP Chem's unit, ExxonMobil's unit will feed two polyethylene units in Mont Belvieu, Texas. For more information, see Industrial Info's project report and February 7, 2018, article - ExxonMobil Commissions Ethylene Production Unit in Baytown, Texas.
CP Chem and ExxonMobil's projects are by no means the end of the line for U.S. ethylene projects. Sasol Limited (NYSE:SSL) (Johannesburg, South Africa), as part of its Lake Charles Chemical Project, is underway with construction of an ethylene unit in Westlake, Louisiana. The unit will have a production capacity of 1.5 million metric tons per year. Construction began in early 2015 and is expected to be wrapped up later this year. Fluor and TechnipFMC plc (London, England) are providing EPC work. For more information, see Industrial Info's project report.
Shell Chemical Company (Houston, Texas), a subsidiary of Royal Dutch Shell plc (NYSE:RDS-A) (The Hague, Netherlands), kicked off construction on a 1.5 million-metric-ton-per-year ethylene unit in Monaca, Pennsylvania early last year. The facility will take advantage of natural gas produced from the Marcellus Shale. Bechtel Group Incorporated (San Francisco, California) and McCarl's Mechanical Contractors Incorporated (Franklin, Pennsylvania) are performing EPC work on the project, which is expected to be completed in the first half of 2020. For more information, see Industrial Info's project report.
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, six offices in North America and 12 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities. Follow IIR on: Facebook - Twitter - LinkedIn. For more information on our coverage, send inquiries to info@industrialinfo.com or visit us online at http://www.industrialinfo.com.
Construction on the unit began in the first half of 2014, with Fluor Corporation (NYSE:FLR) (Irving, Texas) providing engineering, procurement and construction (EPC). Construction was somewhat delayed due to the effects of Hurricane Harvey, which struck the Texas Gulf Coast last August. For more information, see Industrial Info's project report.
Trey Hamblet, Industrial Info's vice president of research for the Chemical Processing Industry, said, "Industrial Info will begin tracking the operational status of this new unit as part of our PetChem Live tools effective immediately. This unit brings the total installed capacity of ethylene in the U.S. and Canada market to more than 83 billion pounds per year."
The ethylene will feed CP Chem's downstream units, which include two polyethylene units in Old Ocean, Texas. Construction on the polyethylene units began in early 2014 and was completed last fall. The units have a combined production capacity of 2.2 billion pounds per year. Jacobs Engineering Group Incorporated (NYSE:JEC) (Dallas, Texas) performed design work on the project, with Zachry Industrial Incorporated (San Antonio, Texas) acting as general contractor. For more information, see Industrial Info's project reports on Polyethylene Unit 1 and Polyethylene Unit 2 in Old Ocean and November 13, 2017, article - Chevron Phillips Chemical Celebrates Startup of Texas Polyethylene Units.
The ethylene and polyethylene units form the bulk of CP Chem's U.S. Gulf Coast Petrochemicals Project, which the company announced in 2011. Mark Lashier, chief executive officer of CP Chem, said, "Construction of these world-scale assets has been ongoing since 2014, and today, we are entering a new era of growth. With global demand for ethylene and polyethylene poised for sustained long-term growth, the U.S. Gulf Coast Petrochemicals Project will allow Chevron Phillips Chemical to deliver high-quality products to our customers across the country and around the globe."
The completion of the ethylene unit comes as part of a wave of ethylene units begun as chemical companies rushed to take advantage of cheap, abundant natural gas produced from shale formations in the U.S. In February, Exxon Mobil Corporation (NYSE:XOM) (ExxonMobil) (Irving, Texas) announced that it had begun commissioning of a 1.5 million-ton-per-year ethylene unit in Baytown, which also began construction in 2014. Like CP Chem's unit, ExxonMobil's unit will feed two polyethylene units in Mont Belvieu, Texas. For more information, see Industrial Info's project report and February 7, 2018, article - ExxonMobil Commissions Ethylene Production Unit in Baytown, Texas.
CP Chem and ExxonMobil's projects are by no means the end of the line for U.S. ethylene projects. Sasol Limited (NYSE:SSL) (Johannesburg, South Africa), as part of its Lake Charles Chemical Project, is underway with construction of an ethylene unit in Westlake, Louisiana. The unit will have a production capacity of 1.5 million metric tons per year. Construction began in early 2015 and is expected to be wrapped up later this year. Fluor and TechnipFMC plc (London, England) are providing EPC work. For more information, see Industrial Info's project report.
Shell Chemical Company (Houston, Texas), a subsidiary of Royal Dutch Shell plc (NYSE:RDS-A) (The Hague, Netherlands), kicked off construction on a 1.5 million-metric-ton-per-year ethylene unit in Monaca, Pennsylvania early last year. The facility will take advantage of natural gas produced from the Marcellus Shale. Bechtel Group Incorporated (San Francisco, California) and McCarl's Mechanical Contractors Incorporated (Franklin, Pennsylvania) are performing EPC work on the project, which is expected to be completed in the first half of 2020. For more information, see Industrial Info's project report.
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, six offices in North America and 12 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities. Follow IIR on: Facebook - Twitter - LinkedIn. For more information on our coverage, send inquiries to info@industrialinfo.com or visit us online at http://www.industrialinfo.com.
