The Golden Triangle Polymers Plant, a $8.5 billion global integrated polymers facility in the Texas Gulf Coast region of the US, has received a Final Investment Decision (FID) from QatarEnergy and Chevron Phillips Chemical Company LLC (CPChem).
The plant, which is about 180 kilometers east of Houston, will have two high-density polyethylene units that together have a combined capacity of 2 million tonnes per year, making them the largest derivatives units of their kind in the world, as well as the largest ethylene cracker unit in the world with a capacity of 2.08 million tonnes per year. The plant’s construction will start right away, with a 2026 startup date anticipated.
The factory will be owned by Golden Triangle Polymers Company LLC, a joint venture in which CPChem and QatarEnergy each have a 51% equity stake.
Commenting on the FID, Saad Sherida Al-Kaabi, the Minister of State for Energy Affairs, the President and CEO of QatarEnergy said: “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. In addition to complementing QatarEnergy’s growing international portfolio, as well as in the United States, this important project will help meet growing global demand for polymers. It also represents a major step in the implementation of our downstream strategy and the next phase of QatarEnergy’s growth, which includes major investments in ethylene, ethylene derivatives and polymers in general.”
The project is QatarEnergy’s second largest investment in the United States after the $11 billion investment (100% basis) in the Golden Pass LNG production and export facility, which is currently under construction and is anticipated to begin operations in late 2024. It is anticipated to generate more than 500 full-time jobs and roughly 4,500 construction jobs.
Minister Al-Kaabi added: “When added to our existing production in Qatar, this new investment will place QatarEnergy amongst the largest petrochemical producers in the world. It will also significantly expand our footprint in the United States, contributing substantially to the communities of the Golden Triangle region of Texas by generating an estimated $50 billion of net economic impact over 20 years”
The factory will start producing polyethylene once it is up and running, which is used to make durable products like water and natural gas supply pipes as well as leisure items like kayaks and coolers.
In concluding his remarks, Minister Al-Kaabi said: “This new joint venture builds on our long-term and successful partnership with Chevron Phillips Chemical and we look forward to further collaborations in the future.”
On his part, Bruce Chinn, the President and CEO of CPChem, said: “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. Our products 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 project benefits from unique environmental and sustainability features, which translate into around 25% lower greenhouse gas emissions than those of facilities of a comparable nature in the US and Europe.