Chevron Phillips Chemical and QatarEnergy on Nov. 16 said they have reached a final investment decision to build an $8.5 billion polymers facility in Orange, Texas.
The agreement is part of a larger move by oil companies preparing for a future in which oil is used less to produce energy but still indispensable for making non‐energy goods such as plastics, a type of polymer.
The facility is expected to be operational in 2026. It will make polyethylene, the most common plastic, for production of goods from coolers to water or gas pipes and packaging.
In its road map to reach net-zero emissions by 2050, the International Energy Agency says the world would still need about 25% of today's oil production for plastics, goods and other chemical applications.
The companies are already partners in Qatar. The pair created a joint venture company for the Texas project, Golden Triangle Polymers Company LLC, in which Chevron Phillips has a 51% equity stake while QatarEnergy owns the rest.
This is Qatar's largest petrochemical investment ever, says the energy minister and CEO of QatarEnergy, Saad Sherida Al-Kaabi.
"This important project will complement QatarEnergy’s growing portfolio, both internationally as well as in the United States," Al-Kaabi said in a statement.
Chevron Phillips Chemical is equally owned by Chevron U.S.A. Inc. and Phillips 66 Co. and is headquartered in The Woodlands, Texas.
The company said the plant is expected to create more than 500 full-time jobs and approximately 4,500 construction jobs.
US Shale Basins Boast $54/bbl Average Breakeven Price
2023-03-24 - The average full-cycle breakeven for U.S. shale basins is approximately $54/bbl, while the average for public E&Ps and private operators is $53/bbl and $58/bbl, respectively, Wells Fargo said, citing Rystad Energy data.
Oil is Sticking Around, Rystad and WoodMac Say
2023-03-24 - Rystad Energy and Wood Mackenzie executives said during an AAPG-Energy Opportunities event in Mexico City that oil will still be needed through 2050 and that the energy transition will take time.
Oil Slides as US Holds Off Refilling Strategic Reserve
2023-03-24 - Strong demand expectations from China capped decreases, with Goldman Sachs saying commodities demand was surging in China, the world's biggest oil importer.
Asia Seeking Reliable Gas from US, Australia, Qatar and Beyond
2023-03-22 - Asia continues to seek affordable, reliable, sustainable energy to assist world emissions targets and “be part of the solution, not part of the problem,” Asia Natural Gas & Energy Association (ANGEA) CEO Paul Everingham told Hart Energy during CERAWeek by S&P Global.
OPEC+ Likely to Stick to its Guns Despite Price Slump, Delegates Say
2023-03-22 - OPEC+ plans on sticking to its deal on output cuts of 2 MMbbl/d until the end of the year, even after the banking crisis following the collapse of two U.S. lenders and Switzerland's UBS buying Credit Suisse.