Two World-Class Ethylene Projects Face Delayed Start

Recently, Chevron Corporation announced that its joint venture with Phillips 66, Chevron Phillips Chemical (CP Chemical), is advancing two world-class petrochemical facilities, which are now expected to start production in 2027. The projects were originally planned to commence in 2026, but both have been delayed.

CP Chem is collaborating with QatarEnergy to develop two major projects: one is an $8.5 billion ethylene and high-density polyethylene (HDPE) joint facility located in Orange, Texas; the other is a $6 billion integrated petrochemical complex in Ras Laffan, Qatar. The Texas project will have an annual capacity that includes a 2.1 million ton ethane cracking unit and two million-ton HDPE units, while the Qatar project will feature a 2.1 million ton/year ethane cracking unit and two HDPE units with a total capacity of 1.68 million tons/year. Once both projects are operational, they will add 4.2 million tons/year of ethylene and 2.68 million tons/year of HDPE capacity to the currently oversupplied and weak-demand global market, leveraging the cost advantages of cheap ethane feedstock from U.S. shale gas and Qatar's North Field.