Unit 1799 at Cedar Bayou, Texas is the largest single loop reactor for high-density polyethylene production in the world today.  

Unit 1799 is a joint manufacturing facility in which Chevron Phillips Chemical and BP Solvay equally share the on-going operating expenses and investments necessary to build and maintain the unit.  Products are produced and sold via separate marketing and commercial business efforts.

The arrangement with BP Solvay is similar to what is commonly employed in oil production, where one company is an operator and the remaining investors have off-take rights to the products or resources being produced.  In a similar fashion, Chevron Phillips Chemical operates Unit 1799 and BP Solvay has product off-take rights.  Product performance is managed through agreed upon product specifications, included in the operating agreements in place between Chevron Phillips Chemical and BP Solvay.

Proprietary technological advances have played a major role in the success of this project.  “Unit 1799 utilizes Chevron Phillips Chemical’s loop slurry process technology, which is one of the most widely licensed chemical processes worldwide.  One of our highest priorities is maintaining the intellectual integrity of the operating systems employed in this highly advanced state-of-the-art unit,” Mark Haney, Vice-President of Polyethylene explains.  “No license has been exchanged in this project as we operate the unit and BP Solvay invests for off-take rights, but not the operational knowledge involved with the unit.” 

Unit 1799 has already realized considerable cost-savings.  “When we began building Unit 1799, we shuttered two polyethylene loops in Orange, Texas, which produced 300 million pounds annually.  Our portion of Unit 1799 is approximately 350 million pounds, resulting in a net increase of 50 million pounds annually.  However, the relative unit cost per pound of Unit 1799’s production is significantly lower so we also achieve significant economies of scale,” said Haney.

Unit 1799 is a shining example of how Chevron Phillips Chemical is investing in technology and leveraging partnerships to stay competitive in the U.S. market.