New Polyethylene Capacity Coming Online in Texas

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Researched by Industrial Info Resources (Sugar Land, Texas)--A buildout in U.S. polyethylene capacity is occurring, with a few projects nearing completion, while others remain in the planning stages. Industrial Info is tracking billions of pounds of polyethylene capacity that could be built in the U.S., with a significant amount of this planned to come online through the first half of next year. The impetus for this buildout in capacity is low-cost natural gas being brought to market in the U.S. from shale formations.

On Monday, Chevron Phillips Chemical Company LP (The Woodlands, Texas) announced that its two polyethylene units being constructed in Old Ocean, Texas, are mechanically complete. The units are now undergoing commissioning and are planned to begin operation in the third quarter of this year. The projects began in early 2014. For more information see Industrial Info's project reports on Unit I and Unit II. Chevron Phillips said in a press release it had purchased nearly 3,000 rail cars to enable shipping polyethylene pellets to customers around the world. Chevron Phillips is a joint venture of Chevron Corporation (NYSE:CVX) (San Ramon, California) and Phillips 66 (NYSE:PSX) (Houston, Texas).

Earlier this month, Dow Chemical Company (NYSE:DOW) (Midland, Michigan) announced the completion of the construction phase of its polyethylene unit in Freeport, Texas. For more information, see June 7, 2017, article - Petchem Project Completions Mark 2017 as Banner Year for Gulf Coast. The unit is undergoing commissioning.

Like others, Exxon Mobil Incorporated (NYSE:XOM) (ExxonMobil) (Irving, Texas) also is planning to expand its Texas polyethylene production. Construction on a polyethylene unit at the company's complex in Mont Belvieu, Texas, began in 2014 and is expected to be completed later this year. The project consists of two units, one to produce high-density polyethylene (HDPE) and one to produce linear low-density polyethylene (LLDPE). For more information, see Industrial Info's project report. The project will obtain feedstock from ExxonMobil's 3 billion-pound-per-year ethylene unit addition, which is under construction in Baytown, Texas, and is planned for completion in the third quarter of this year. For more information, see Industrial Info's project report.

Formosa Plastics Corporation USA (Livingston, New Jersey) is under way on a low-density polyethylene (LDPE) unit in Point Comfort, Texas, on the Gulf Coast. Construction began in late 2016 and is expected to be completed in the first half of 2018. For more information, see Industrial Info's project report.

Also along the Texas Gulf Coast, M&G Polymers (Houston, Texas) began work on a polyethylene terephthalate (PET) unit in late 2014. The Corpus Christi plant is planned to be completed in the first half of next year. For more information, see Industrial Info's project report.

These are only a few of the near-term Texas-based polyethylene projects being tracked by Industrial Info. Nevertheless, they will bring billions of pounds of polyethylene online. Several more polytethylene projects are being planned in the U.S. While many of these are located on the Gulf Coast, a few are being planned to take advantage of natural gas feedstock from the Bakken and Marcellus regions of the U.S. Information on these and thousands of other projects is available by subscribing to Industrial Info's Global Project Platform, which contains detailed information on more than 133,000 active projects throughout the world, valued at $13.65 trillion.

Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, five offices in North America and 10 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.