Chevron Phillips narrowing in on spot for next $5.8B petrochemical expansion
https://www.chron.com/business/energy/article/Chevron-Phillips-narrowing-in-on-spot-for-next-13829339.php May 8, 2019
...Although the Cedar Bayou site in Baytown has the space for growth, Garland said there could be potential permitting limitations on building a second ethane cracker there because of its proximity to other existing crackers in the area, including Chevron Phillips' recently added ethane cracker and another cracker at separate nearby facility owned by Exxon Mobil. And Chevron Phillips' Chemical facilities at Port Arthur doesn't have the space for growth, leaving Orange and Sweeny as the ones with the best location and logistical advantages, Garland said.
Chevron and Phillips 66 expect to make a joint decision on where and when to invest by 2020 with a potential startup of a new project by 2023 or 2024, Garland said.
Despite a wave of new petrochemical projects on the popping up on the Gulf Coast, Garland said there is still plenty of demand for plastics chemicals. Cheap supplies of ethane in the region to support continued capital investments on the Gulf Coast, he added.
Strong demand has kept Chevron Phillips' new ethane cracker in Cedar Bayou running 15 percent above its original design capacity, Garland said. The cracker recently increased its production capacity to 3.8 billion pounds per a year....
