Chevron Phillips Chemical Co. LLP is signaling plans with the Qatari government to construct a $8 billion ethylene cracker and polyethylene facility in the U.S. Gulf Coast region.
CP Chem will own 51 percent of the new location with Qatar Petroleum owning the remaining 49 percent.
While the two sides signed an agreement to pursue the project at the White House July 9 in front of both U.S. President Donald Trump and Qatar Emir Tamim bin Hamad al-Thani, a final investment decision still must be made by the end of 2021. If the project does move forward, production is expected to begin in 2024.
The latest project continues what the partners describe as a close partnership between CP Chem and the national petroleum company.
Just last month, the two sides also unveiled plans for a new petrochemical complex in Ras Laffan Industrial City in Qatar to produce ethylene and HDPE.
Qatar Petroleum will own 70 percent of that joint venture and CP Chemical will own 30 percent. Production is expected to begin in late 2025.
The companies also have existing operations in Qatar called Qatar Chemical Co. Ltd., Qatar Chemical Co. II Ltd., and Ras Laffan Olefins Co.
Qatar Petroleum CEO Saad Sherida al-Kaabi said, in a statement, the new agreement will "further cement the strong partnership between our two companies and ... complement Qatar Petroleum's international portfolio in the United States, which is a core growth area for us as we believe it has great prospects and growth opportunities."
At its peak, the construction project is expected to employ 9,000 workers. The facility, once operational, is expected to have about 600 employees.
