ChevronPhillips Awaits Final Approval of $200 Million Unit Addition in Texas

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Researched by Industrial Info Resources (Sugar Land, Texas). ChevronPhillips Chemical Company (CPChem) (The Woodlands, Texas) is getting much closer to receiving approval from the board of directors for its planned $200 million polyphenylene sulfide (PPS) Ryton unit addition at its Borger, Texas plant site. CPChem has worked with Jacobs Engineering Group, Incorporated (NYSE:JEC) (Houston, Texas) to complete the phase III cost estimate and expects final approval of the nearly $200 million project sometime next month. Jacobs is expected to be awarded the E+P+C (engineering, planning and construction) services contract for the project, with construction beginning early next year.

This project is just one of ten significant capital and maintenance projects Industrial Info is currently tracking for CPChem in the United States and planned to kick off in the next two years with all projects combined totaling over $331 million worth of investment. Nearly $30 million of the future activity is related to major planned unit turnarounds. At least three major ethylene unit turnarounds are currently planned beginning early next year starting with the ethylene Unit 24 located at the Sweeney plant in Old Ocean, Texas. The remaining two major ethylene turnarounds aren’t planned to begin until October of next year and the other in the first quarter of 2008.

Major capital project activity planned to begin construction this fall includes a phase III expansion of CPChem’s polypropylene capacity at the Houston Chemical Complex located in Pasadena, Texas. Jacobs Engineering is providing E&C services for this estimated $15 million project that is expected to be complete in the second quarter of 2007. Industrial Info has been tracking plans for several years for the planned expansion of a sister CPChem company named Chevron Oronite at its site located in Belle Chase, Louisiana. This expansion is expected to increase production capacity of High High Over Based (HHOB) sulfonates to an estimated 40,000 metric tons a year by the summer of 2007. URS Corporation (Baton Rouge, Louisiana) is providing engineering services for this nearly $14 million project.

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