QP signs deal with Chevron Phillips to develop petrochemical plant in the US
In one of the agreements signed during His Highness the Amir Sheikh Tamim bin Hamad Al Thani’s visit to the US, Qatar Petroleum (QP) has once again teamed up with Chevron Phillips Chemical Company (CPCC) to focus efforts on building a world-class petrochemical project.
The new project will be developed in the Gulf Coast region of the US and is estimated to cost around $8bn.
The US Gulf Coast II Petrochemical Project (USGC II) will have an ethylene cracker with a capacity of 2mn tons per year, making it the largest cracker in the world.
It will also include two high-density polyethylene units with a capacity of 1mn tons per year each.
The signing of the agreement took place at the White House, in the presence of HH the Amir and the US President Donald Trump.
HE the Minister of State for Energy Affairs Saad Sherida Al Kaabi, also the President and CEO of Qatar Petroleum, and President & CEO of Chevron Phillips Chemical, Mark E. Lashier, initialed the agreement.
In the presence of His Highness the Amir, Sheikh Tamim bin Hamad Al Thani, & US President Donald Trump, Qatar Petroleum signs an agreement with Chevron Phillips Chemical Company to develop a new world-scale petrochemical project in the US Gulf Coast regionhttps://t.co/488qgZQQ4B pic.twitter.com/5VvKv0ARTP— Qatar Petroleum (@qatarpetroleum) July 10, 2019
Under the pact, QP will own a 49 percent share in the USGC II project, while CPCC will own the remaining 51 percent share.
CPCC will provide project management and oversight and will be responsible for the operation and management of the facility.
“This is the second agreement of its kind in as many weeks, with our trusted partner, Chevron Phillips Chemical, to further cement the strong partnership between our two companies and to 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,” Al Kaabi said.
“Qatar Petroleum’s financial strength, its commitment to safety as a core value and shared belief in our strategy to build facilities located close to competitive feedstocks make this an ideal relationship,” the CPCC CEO said.
The region's biggest ethane processing plant will be embedded within a massive petrochemical complex, which will be set up in Qatar’s Ras Laffan Industrial area.
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Cover Image: photo is for illustrative purposes only