QatarEnergy makes largest ever investment in petrochemical sector
QatarEnergy takes final investment decision on the largest integrated polymers facility in world
QATARENERGY and Chevron Phillips Chemical Company (CPChem) announced that they have taken a Final Investment Decision (FID) on the Golden Triangle Polymers Plant, an $8.5 billion worldscale integrated polymers facility in the Texas Gulf Coast area in the United States of America.
Located about 180 kilometers east of Houston, the plant will include an ethylene cracker unit with a capacity of 2.08 million tonnes per annum, making it the largest in the world, and two high-density polyethylene units with a combined capacity of 2 million tonnes per annum, also making them the largest derivatives units of their kind in the world.
Construction of the plant will begin immediately, with an expected startup date in 2026.
The plant will be owned by Golden Triangle Polymers Company, a joint venture in which QatarEnergy holds a 49 percent equity interest with 51 percent held by CPChem.
Commenting on the FID, the Minister of State for Energy Affairs and the President and CEO of QatarEnergy HE Saad Sherida Al Kaabi said, “We are excited to announce taking the FID on our largest petrochemical investment ever, highlighting QatarEnergy’s integrated position as a major player in the LNG and international exploration sectors, as well as being a global petrochemicals producer.”
In addition to complementing QatarEnergy’s growing international portfolio, including in the United States, this important project will help meet the growing global demand for polymers. It also represents a major step in the implementation of our downstream strategy and the next phase of QatarEnergy’s growth, which includes major investments in ethylene, ethylene derivatives, and polymers in general.”
The project, expected to create more than 500 full-time jobs and approximately 4,500 construction jobs, is QatarEnergy’s second largest investment in the US after the $11 billion investment (100 percent basis) in the Golden Pass LNG production and export facility, which is currently under construction and is expected to start up in late 2024.
Kaabi said, “When added to our existing production in Qatar, this new investment will place QatarEnergy amongst the largest petrochemical producers in the world. It will also significantly expand our footprint in the United States, contributing substantially to the communities of the Golden Triangle region of Texas by generating an estimated $50 billion of net economic impact over 20 years.”
Once operational, the plant will produce polyethylene, which is used in the production of durable goods like pipe for natural gas and water delivery and recreational products such as kayaks and coolers.
It is also used in essential packaging applications to protect and preserve food, helping prevent it from going to landfills and keep medical supplies sterile. The polyethylene produced by the project will be sold primarily to Asia, Europe, and Latin America.
Kaabi said, “This new joint venture builds on our longterm and successful partnership with Chevron Phillips Chemical and we look forward to furthering collaborations in the future.”
CPChem President and CEO Bruce Chinn said, “Chevron Phillips Chemical and QatarEnergy have collaborated for over 20 years on the assets we operate together in Qatar. We have a great relationship and a proven track record of operating these facilities safely and reliably. Our products make life better for billions of people every day, and they are part of a lower-carbon future. This facility will help meet the growing demand for our products and improve the quality of life for the world’s growing global population.”
The project enjoys special environmental and sustainability attributes that would be reflected in about 25 percent lower greenhouse gas emissions than similar facilities in the United States and Europe.
CPChem will manage engineering, procurement, and construction for the project, which will be undertaken by a number of joint ventures and contractors including Zachry Industrial, T.EN Stone & Weber Process Technology, PCL Industrial Construction., JGC America, Kiewit Energy Group, Burns & McDonnell Engineering Company, Emerson Process Management, and WT Byler. CPChem will also operate the facility after start-up.