Market sources informed SSESSMENTS.COM that Chevron Phillips Chemical (CPChem) would delay the final investment decision (FID) on the USGC II Petrochemicals Project, an $8-billion joint venture project developed with Qatar Petroleum (QP) due to uncertainty caused by the coronavirus pandemic. Both companies announced the JV project in July 2019, with expected FID in 2021 and completion in 2024. However, the FID was delayed to an unspecified date. CPChem only said that it would take longer than initially planned to make the decision.
CPChem will hold a 51% stake in the proposed complex which will include a 2 million tons/year ethylene plant and downstream 1 million tons/year HDPE plants. The site will likely be built in Orange, Texas, where CPChem already has two HDPE plants. The local authorities have agreed to grant the project a ten-year, 100% tax break that must be effective no later than January 1, 2024.
