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As Industry Accelerates, Company Positions for Future

Most industry experts predict a chemical industry peak, perhaps as early as the end of 2005.  As chemical markets improve for existing assets, Chevron Phillips Chemical moves forward with its growth plans to help ensure a successful future.

Saudi Arabia project study underway

Following the receipt of an investment license from the Saudi Arabian General Investment Authority, Saudi Chevron Phillips Company and partner Saudi Industrial Investment Group (SIIG) confirm that they are studying alternatives to expand operations at Al Jubail in eastern Saudi Arabia. Any actual expansion requires approval from Chevron Phillips Chemical's Board of Directors and the preparation of a formal development plan. If pursued, the project would be the Company's third investment in Saudi Arabia - joining the Saudi Chevron Phillips and Jubail Chevron Phillips plants.

Preliminary studies are focused on the construction of a world scale cracker to produce ethylene and propylene. Downstream units to produce styrene, 1-hexene, polypropylene, and polystyrene are also being evaluated, which would expand the product offerings currently produced by Company facilities within the Middle East. The products manufactured at such an expanded facility would serve markets in Europe and Asia.   

Contractor selected for Q-Chem II cracker

Chevron Phillips Chemical Company LLC, Qatar Petrochemical Company Ltd. and Total Petrochemicals have signed a letter of intent with Technip France to provide engineering, procurement and construction (EPC) services to build a 1.3 million ton-per-year ethylene cracker in Ras Laffan Industrial City, Qatar.

The cracker will provide ethylene feedstock via pipeline to derivative units planned for development in Mesaieed, Qatar. This cracker venture will be owned by Qatar Petrochemical Company Ltd (QAPCO) and Total Petrochemicals through its Qatofin joint venture, and Qatar Petroleum with Chevron Phillips Chemical Company LLC through its Q-Chem II joint venture.  Bids for the derivative units are due mid year.

The Q-Chem II project and the ethylene cracker are expected to begin operation in late 2008. 

Q-Chem II will include a 350,000 metric-ton-per-year polyethylene plant and a 350,000 metric-ton-per-year normal alpha olefins plant that will be located adjacent to the existing Q-Chem complex. Both processes will utilize Chevron Phillips Chemical Company LLC's proprietary technologies.