07/09/2019 | Press release | Distributed by Public on 07/09/2019 11:47
$8 billion project to build on long-standing and highly successful relationship between Qatar Petroleum and Chevron Phillips Chemical
Ceremony witnessed by President Donald Trump and His Highness, Sheikh Tamim bin Hamad Al Thani, Amir of the State of Qatar
The signing ceremony, hosted at the White House and witnessed by President Donald Trump and His Highness, Sheikh Tamim bin Hamad Al Thani, Amir of the State of Qatar, included Chevron Phillips Chemical President and CEO Mark Lashier and His Excellency Mr. Saad Sherida Al-Kaabi, Qatar's Minister of State for Energy Affairs, the President and CEO of Qatar Petroleum. Chevron Corporation Chairman and CEO Michael Wirth and Phillips 66 Chairman and CEO Greg Garland also attended the ceremony.
Chevron Phillips Chemical would be the majority owner with a 51 percent share and Qatar Petroleum would own 49 percent of the project. Chevron Phillips Chemical would provide project management and oversight and be responsible for the operation and management of the facility. The preliminary cost of USGC II is approximately $8 billion. Chevron Phillips Chemical and Qatar Petroleum expect a final investment decision (FID) no later than 2021, followed by full funding and the award of engineering, procurement and construction (EPC) contracts, with targeted startup of the new facility in 2024.
At peak construction, USGC II would support an estimated 9,000 construction jobs and once operational, approximately 600 full time positions. The site's location would be in the Gulf Coast region, where there is direct access to the significant shale natural gas liquid reserves of the Permian Basin.
His Excellency Mr. Saad Sherida Al-Kaabi said, 'We are very pleased to sign this agreement, which is the second of its kind in as many weeks, with our trusted partner, Chevron Phillips Chemical, to further cement the strong partnership between our two companies and to complement Qatar Petroleum's international portfolio in the United States, which is a core growth area for us as we believe it has great prospects and growth opportunities.'
'Qatar Petroleum is already a terrific partner of Chevron Phillips Chemical on petrochemical plants in Qatar and we look forward to expanding our relationship in the United States as we jointly seek to develop a new petrochemical facility along the U.S. Gulf Coast,' said Lashier. 'Qatar Petroleum's financial strength, its commitment to safety as a core value and shared belief in our strategy to build facilities located close to competitive feedstocks make this an ideal relationship.'
In June 2019, Chevron Phillips Chemical and Qatar Petroleum announced a joint venture to pursue a world-scale petrochemical plant in Qatar at the Ras Laffan Industrial City. The companies currently operate Qatar Chemical Company Ltd. and Qatar Chemical Company II Ltd., as well as the Ras Laffan Olefins Company. These are some of the safest and most successful assets in Chevron Phillips Chemical's global portfolio.