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Industrial Development Briefs: Chevron Phillips/QatarEnergy, Colonial Chemical

Written by Marybeth Luczak, Executive Editor
The new Chevron Philips Chemical-QatarEnergy integrated polymer facility in Orange, Tex., will include a rail and storage-in-transit yard. Engineering, procurement and construction services will be provided by W.T. Byler Co., Inc. (Photograph Courtesy of Chevron Phillips Chemical)

The new Chevron Philips Chemical-QatarEnergy integrated polymer facility in Orange, Tex., will include a rail and storage-in-transit yard. Engineering, procurement and construction services will be provided by W.T. Byler Co., Inc. (Photograph Courtesy of Chevron Phillips Chemical)

Chevron Phillips Chemical Company LLC and QatarEnergy are building an $8.5 billion rail-served integrated polymers facility in Orange, Tex. Also, Colonial Chemical is celebrating the completion of a rail spur at its South Pittsburg, Tenn., facility.

Chevron Phillips Chemical and QatarEnergy on Nov. 16 reported their collaboration on an integrated polymer facility. They have created a joint venture company, Golden Triangle Polymers Company LLC, named for the Golden Triangle region of Texas that includes the city of Orange where the facility will be built. Chevron Phillips Chemical owns a 51% equity share in the joint venture and QatarEnergy owns 49%.

Once operational in 2026, the Golden Triangle Polymers plant will produce Marlex® polyethylene, which is used in the production of durable goods like pipe for natural gas and water delivery as well as recreational products such as kayaks and coolers, according to the joint venture partners. It is also used in essential packaging applications to protect and preserve food and help keep medical supplies sterile. The plant will include a 2,080 KTA ethane cracker and two 1,000 KTA high-density polyethylene units.

Chevron Phillips Chemical will manage engineering, procurement and construction for the project and operate the facility after start-up.

The joint venture partners said construction of the Golden Triangle Polymers plant will begin immediately near Chevron Phillips Chemical’s existing facility in Orange, located 113 miles east of Houston. The project also includes a rail and storage-in-transit yard, with engineering, procurement and construction services provided by W.T. Byler Co., Inc.

Chevron Phillips Chemical President and CEO Bruce Chinn

The engineering, procurement and construction of the polyethylene units will be executed through ZDJV, a joint venture between Zachry Industrial Inc. and DL USA, Inc. The furnace portion of the ethane cracker engineering and procurement will be executed by T.EN Stone & Weber Process Technology, Inc., while PCL Industrial Construction Co. will provide construction services. Engineering, procurement and construction for the additional portions of the ethane cracker will be executed by JKJV, a joint venture between JGC America, Inc. and Kiewit Energy Group, Inc. BMZ Third Coast Partners, a joint venture between Burns & McDonnell Engineering Company, Inc. and Zachry Industrial Inc., will execute the utilities and infrastructure scope of work. The main automation contractor for the project is Emerson Process Management. W.T. Byler Co., Inc. is managing heavy civil work for the entire site.

Chevron Phillips Chemical and QatarEnergy expect the project to create more than 500 full-time and approximately 4,500 construction jobs, and generate an estimated $50 billion for the community in residual economic impacts.

“Chevron Phillips Chemical and QatarEnergy have collaborated for over 20 years on the assets we operate together in Qatar,” Chevron Phillips Chemical President and CEO Bruce Chinn said. “This facility will help meet the growing demand for our products and improve the quality of life for the world’s growing global population.”

“This important project will complement QatarEnergy’s growing portfolio, both internationally as well as in the United States, and will help meet growing global demand for polymers,” said His Excellency Mr. Saad Sherida Al-Kaabi, the Minister of State for Energy Affairs and President and CEO of QatarEnergy. “It builds on our long-term and successful partnership with Chevron Phillips Chemical, and we look forward to further collaborations in the future.”

(Photograph Courtesy of Colonial Chemical)

Construction on the Colonial Chemical rail spur began in fourth-quarter 2021. According to the company, it culminated several years of work and public/private cooperation between a number of entities, including Tennessee Department of Transportation (TDOT); Southeast Tennessee Development District; Marion County, Tenn.; Marion Natural Gas; Sequatchie Valley Electric Cooperative; and CSX, at a cost of more than $3.4 million.

According to Colonial, the spur is set to expand its “supply chain flexibility, reduce raw materials costs, and provide a key element for the company’s growth in its present location.” The spur connects the Colonial Chemical facility directly to CSX lines.

Colonial Chemical on Nov. 18 will hold a ribbon-cutting ceremony for the new spur as well as a new 5,000 square-foot employee center, reported the Chattanoogan.com on Nov. 16.

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