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.
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.