State-owned giant QatarEnergy and US-based Chevron Phillips Chemical Company have taken the final investment decision on the $8.5 billion Golden Triangle Polymers Plant, in the Texas gulf coast area of the United States.
The Qatari giant on Wednesday confirmed the development and said “the plant will include an ethylene cracker unit with a capacity of 2.08 million tonnes per annum, making it the largest in the world".
The proposed facility will also include “two high-density polyethylene units with a combined capacity of 2 million tpa”, it noted.
QatarEnergy this year is aggressively scaling up its investments across liquefied natural gas, global oil and gas exploration and petrochemicals on the back of record gas prices and the ongoing global energy crisis.
The Persian Gulf LNG giant is expected to spend up to $50 billion in ramping up its liquefaction capacity to 110 million tpa before the end of this decade.
QatarEnergy said construction of the polymer plant will begin immediately, with start-up expected in 2026.
“The plant will be owned by Golden Triangle Polymers Company, a joint venture in which QatarEnergy holds a 49% equity interest with 51% held by Chevron Phillips Chemical Company,” it said.
Chevron Phillips Chemical is a 50:50 joint venture between oil and gas giant Chevron and Phillips 66.
QatarEnergy said that the plant will produce polyethylene, which is used in the production of durable goods like pipe for natural gas and water delivery.
Saad Sherida Al-Kaabi, QatarEnergy chief executive said the company has an “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... this important project will help meet growing global demand for polymers,” Al-Kaabi noted.