02-04-2012

Chevron Phillips Chemical to build world’s largest on-purpose 1-Hexene plant

Chevron Phillips Chemical Company LP (Chevron Phillips Chemical) will build the world’s largest on-purpose 1-hexene plant capable of producing up to 250,000 metric tons (551,000,000 lbs) per year at its Cedar Bayou Chemical Complex in Baytown, Texas. Construction is targeted to commence in the first half of 2012, and the project is anticipated to start up during the first quarter of 2014.

The company has executed agreements with S & B Engineers and Constructors, Ltd., to engineer and build the plant utilizing Chevron Phillips Chemical’s proprietary, 2nd generation, on-purpose 1-hexene technology, which produces comonomer grade 1-hexene from ethylene with exceptional product purity.

“Approval of this 1-hexene project represents a significant milestone for our business and it supports our growth strategy as a leader in the production of normal alpha olefins,” said Mitch Eichelberger, general manager of normal alpha olefins and polyalphaolefins for Chevron Phillips Chemical. “Constructing this project is an important step to ensure we meet the growing demand of our global customer base.”

The new 1-hexene unit at the Cedar Bayou facility will enjoy significant advantages in infrastructure, feedstock availability, and operational expertise. 1-hexene is a critical component used in the manufacture of polyethylene, a plastic resin commonly converted into film, pipe, detergent bottles, and food and beverage containers.

The proprietary on-purpose 1-hexene technology is already successfully used at Qatar Chemical Company Ltd.’s (Q-Chem) facility in Mesaieed, Qatar, and will soon be utilized at the Saudi Polymers Company plant in Al Jubail, Saudi Arabia. Both of these facilities are joint ventures of wholly-owned subsidiaries of Chevron Phillips Chemical Company LLC.