Chevron Phillips Chemical and Qatar Petroleum signed an $8 billion agreement to establish a petrochemical plant near the US Gulf Coast, according to a company statement.

The plant will include a 2,000 kilotons per year (KTA) ethylene cracker and two 1,000 KTA polyethylene units, and will mostly manufacture hard plastics.

Chevron Phillips Chemical, a joint venture of Chevron and Phillips 66, will be the majority owner controlling a 51% stake, while Qatar Petroleum will own the remaining 49%. The two companies expect a final investment decision by 2021, as the project is supposed to begin operations by 2024.

The deal was signed at the White House and witnessed by US President Donald Trump and Tamim bin Hamad Al Thani, the Emir of Qatar, as well as Chevron Phillips Chemical President and CEO Mark Lashier and Saad Sherida Al-Kaabi, Qatar’s Minister of State for Energy Affairs, the President and CEO of Qatar Petroleum.
Chevron Corporation Chairman and CEO Michael Wirth and Phillips 66 Chairman and CEO Greg Garland also attended the ceremony, the statement added
The two companies recently signed a similar agreement for a separate petrochemical complex that will be built north of Doha in the Ras Laffan Industrial City and is expected to be completed by Q4 2025.

It was reported a year ago that Qatar Petroleum will invest around $20 billion in American oil and gas fields over a five-year period.