Phillips 66 and Chevron Corp. are moving closer to making the decision on finalising location of their chemical subsidiary on the Gulf Coast, investing about US$200 mln this year in preliminary project planning and engineering, Phillips 66 Chief Executive was reported to have announced by houstonchronicle.com. Garland said the two owners are still evaluating which Chevron Phillips Chemical location in the region will host the US$5.8 bln expansion.
Nearly every Chevron Phillips location is under consideration, but Sweeny and Orange seem to be the front runners in the race. Though the Cedar Bayou site in Baytown has the space for growth, Garland said there could be potential permitting limitations on building a second ethane cracker there because of its proximity to other existing crackers in the area, including Chevron Phillips' recently added ethane cracker and another cracker at separate nearby facility owned by Exxon Mobil. And Chevron Phillips' Chemical facilities at Port Arthur doesn't have the space for growth, leaving Orange and Sweeny as the ones with the best location and logistical advantages, Garland said.
Chevron and Phillips 66 expect to make a joint decision on where and when to invest by 2020 with a potential startup of a new project by 2023 or 2024, Garland said.