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Firms Plan $8B Investment in U.S. Petrochemical Plant

July 17, 2019
President Donald Trump and His Highness, Sheikh Tamim bin Hamad Al Thani, Amir of the State of Qatar, witness the signing. Image courtesy of Chevron Phillips Chemical
President Donald Trump and His Highness, Sheikh Tamim bin Hamad Al Thani, Amir of the State of Qatar, witness the signing. Image courtesy of Chevron Phillips Chemical

State-owned oil and gas firm Qatar Petroleum is teaming up with American company Chevron Phillips Chemical to jointly open a new petrochemical production facility in the U.S. Gulf Coast region, a recent Chevron Phillips press release announced. The $8 billion U.S. Gulf Coast II Petrochemical Project (USGC II includes plans for a 2000 KTA ethylene cracker and two 1000 KTA high-density polyethylene units. 

The agreement was signed by the two firms at a White House ceremony this month. U.S. President Donald J. Trump and High Highness, Sheikh Tamim bin Hamad Al Thani, Amir of the State of Qatar attended the event, as well as top officials from Chevron Phillips and Qatar Petroleum. 

Chevron Phillips, a majority stakeholder in the project with a 51% share, will contribute project management and oversight for the operation and management of the facility. The remaining 49% of the project will be owned by Qatar Petroleum. 

The Qatari firm’s chief executive officer, His Excellency Mr. Saad Sherida Al-Kaabi, said in a release that the United States “is a core growth area for us” because of its “great prospects and growth opportunities.” The two companies said the intend to make a final investment decision (FID) by 2021. Startup of the new U.S. facility is slated for 2024. As the facility becomes operational, some 600 new, full-time jobs will be created.

“Qatar Petroleum is already a terrific partner of Chevron Phillips Chemical on petrochemical plants in Qatar and we look forward to expanding our relationship in the United States as we jointly seek to develop a new petrochemical facility along the U.S. Gulf Coast,” Chevron Phillips Chemical President and Chief Executive Officer Mark Lashier said in a statement. “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.”

A joint venture was formed between the two companies in June this year to open a new petrochemical plant at the Ras Laffan Industrial City in Qatar.  

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