Chevron Phillips Chemical Co. plans to add almost 600 million pounds of alpha olefins capacity by building a new production unit in Old Ocean, Texas.
The new unit is expected to open in 2023, officials with CP Chem in The Woodlands, Texas, said in a May 5 news release. At its peak, the project anticipates supporting more than 600 construction jobs and 50-plus full-time positions.
The new unit will make 1-hexene monomer, which is used to make high-performance polyethylene for production of film and rigid containers for food, detergent, pharmaceuticals and other uses.
"As global PE demand continues to grow, this project demonstrates [CP Chem's] commitment to expand with customer needs and remain a leading 1-hexene supplier," said Mitch Eichelberger, executive vice president of polymers and specialties.
"Old Ocean is already home to several great assets, and we look forward to becoming an even more important economic engine for the local economy, while expanding our business to meet global demand from current and future customers," he added.
Officials said the new unit "will harness the latest advances in process design to maximize production, optimize resource management and reduce emissions." Resource efficiency and reduced emissions are both central to the company's sustainability strategy, they added.
CP Chem currently operates two full-range alpha-olefin units and the world's largest on-purpose 1-hexene unit at its Cedar Bayou plant in Baytown, Texas. Officials said the new unit's location will provide additional flexibility and production to meet anticipated demand from the company's growing customer base, while establishing room for continued future growth.
CP Chem is a major supplier of polyethylene and related feedstocks and specialty chemical. The firm is a 50-50 joint venture between energy firms Chevron and Phillips 66. CP Chem posted sales of about $8.3 billion in 2020.