CPChem, QatarEnergy take FID for USGC petrochemical complex
Chevron Phillips Chemical Co. LLC (CPChem)—a joint venture of Chevron Corp. and Phillips 66—and QatarEnergy have reached positive final investment decision (FID) to move forward with construction of the partners’ previously delayed grassroots petrochemical complex along the Texas Gulf Coast in Orange, Tex., about 113 miles east of Houston (OGJ Online, July 15, 2019).
To be named Golden Triangle Polymers Co. LLC—a newly formed joint-venture partnership of CPChem (51%) and QatarEnergy (49%)—the proposed $8.5-billion integrated polymers complex will include a 2.08-million tonne/year (tpy) ethylene cracker and two 1-million tpy high-density polyethylene (HDPE) units for production of proprietary Marlex polyethylene pellets for sale primarily to manufacturers in the Asia Pacific, Europe, and Latin America, the partners said upon announcing FID on Nov. 16.
Targeting 25% lower greenhouse gas (GHG) emissions than similar US and European plants in support of CPChem and QatarEnergies’ commitments to enabling a reduced-carbon future, the complex comes as part of the companies’ aim of meeting increased global demand for polymers, as well as the next phase of QatarEnergies’ downstream growth strategy, which includes major investments in ethylene, ethylene derivatives, and general polymers, said Saad Sherida Al-Kaabi, QatarEnergy’s president and chief executive officer.
Scheduled for immediate start of construction, the Golden Triangle Polymers complex is slated for commissioning in 2026, the companies said.
Earlier this year, CPChem and QatarEnergy confirmed they also are moving forward with a previously announced plan to jointly build and operate the proposed Ras Laffan petrochemical project (RLPP) in Ras Laffan Industrial City, Qatar (OGJ Online, June 9, 2022). The RLPP, too, will feature a 2.08-million tpy ethane cracker and two HDPE units.
CPChem and QatarEnergy already serve as JV partners in Ras Laffan Olefins Co. and Qatar Chemical Co. Ltd., which respectively operate petrochemical production complexes in Ras Laffan and Mesaieed, Qatar.
The partners previously deferred taking FID on the Golden Triangle Polymers project in 2020 amid a then-uncontrolled global pandemic (OGJ Online, Aug. 2, 2021; Aug. 3, 2020).
Contract awards
Acting as manager of engineering, procurement, and construction (EPC) activities on behalf of the Golden Triangle Polymers JV, CPChem—which also will operate the complex upon startup—confirmed awarding the following contracts for the project:
- ZDJV—a joint venture of Zachry Industrial Inc. (Zachry Group) and DL USA Inc.—will deliver EPC on the two HDPE units.
- T.EN Stone & Weber Process Technology Inc. will provide engineering and procurement (EP) for the furnace portion of the ethane cracker.
- PCL Industrial Construction Co. will provide construction-related services for the ethane cracker furnace.
- JKJV—a joint venture of JGC America Inc. and Kiewit Energy Group Inc.—will deliver EPC on additional but unspecified sections of the ethane cracker.
- BMZ Third Coast Partners—a joint venture of Burns & McDonnell Engineering Company Inc. and Zachry Group—will execute works related to utilities and infrastructure at the complex.
- Emerson Process Management LLLP will serve as the project’s main automation contractor.
- W.T. Byler Co. Inc. will manage heavy civil work for the entire site and deliver EPC for the project’s planned rail and storage-in-transit yard.
Robert Brelsford | Downstream Editor
Robert Brelsford joined Oil & Gas Journal in October 2013 as downstream technology editor after 8 years as a crude oil price and news reporter on spot crude transactions at the US Gulf Coast, West Coast, Canadian, and Latin American markets. He holds a BA (2000) in English from Rice University and an MS (2003) in education and social policy from Northwestern University.
