A joint venture formed by Chevron Phillips Chemical (CP Chem) and QatarEnergy, Golden Triangle Polymers, recently made a final investment decision to construct a new, $8.5 billion integrated polymers plant in Texas.

The parties announced in a release Wednesday that Golden Triangle selected Orange, TX as the location of the planned facility. CP Chem holds a 51% of equity in the newly-created entity and QatarEnergy owns the remaining shares.

“Chevron Phillips Chemical and QatarEnergy have collaborated for over 20 years on the assets we operate together in Qatar. We have a great relationship and a proven track record of operating these facilities safely and reliably,” Bruce Chinn, president and CEO of CP Chem, said in statement. “Our products help make life better for billions of people every day, and they are part of a lower carbon future. This facility will help meet the growing demand for our products and improve the quality of life for the world’s growing global population.”

The plant will manufacture Marlex brand polyethylene when work on the site reaches completion. Polyethylene has applications in durable goods, medical products, and packaging. Operations are slated to commence at the Orange location in 2026 with a 2,080 KTA ethane cracker and two 1,000 KTA high-density polyethylene units.

Under the terms of the partnership, CP Chem will oversee engineering, procurement and construction for the project and operate the site after it becomes operational.

“We are excited to announce taking the FID on our largest petrochemical investment ever, highlighting QatarEnergy’s integrated position as a major player in the LNG and international exploration sectors, as well as being a global petrochemicals producer,” said His Excellency Mr. Saad Sherida Al-Kaabi, president and CEO of QatarEnergy, in the release. “This important project will complement QatarEnergy’s growing portfolio, both internationally and in the United States, and will help meet growing global demand for polymers.”

Over 500 full-time jobs will be created as a result of the investment.