Press Release

Chevron Phillips Chemical Breaks Ground on Two World-Scale Polyethylene Units for U.S. Gulf Coast Petrochemicals Project

Posted: 06/24/2014

Zachry representatives pictured from left to right: Vice President, EPC Execution Josephine Hurtado; Senior Director, External Affairs – Gulf Coast Region Jeff Kuhn; Sr. Vice President, Director of Operations Ralph Biediger; Senior Vice President Steve Dedman; Operations Manager Dan Pratt; Senior Project Manager Andy Powers; Senior Operations Manager Wade Stevens and EPC Project Executive Matt Key

Chevron Phillips Chemical Company LP (Chevron Phillips Chemical) held its second groundbreaking ceremony for its U.S. Gulf Coast (USGC) Petrochemicals Project at the construction site in Old Ocean, Texas. The construction includes two world-scale polyethylene units that will each produce 500,000 metric tons of plastic resin every year. With this groundbreaking, Chevron Phillips Chemical maintains its first mover position within the petrochemicals industry to engineer and build world-scale ethylene and derivatives facilities in the U.S. based upon the successful development of shale resources. The groundbreaking ceremony included local officials from the Cities of Sweeny and West Columbia, Brazoria county commissioners, Texas representative Dennis Bonnen and other state and federal elected representatives. In addition, officials from the owner companies of Chevron Phillips Chemical, Chevron Corporation, and Phillips 66 were in attendance at the ceremony along with representatives from the EPC Contractor Gulf Coast Partners, a partnership between Technip USA Inc. and Zachry Industrial

The resin from the polyethylene units will be used for a variety of products, including new flexible packaging options that extend the shelf life of fruits and vegetables, as well as in the creation of plastic piping, merchandise bags, and bottles. In addition to constructing the production facilities, 45 miles of railroad track will be installed on-site to hold and transport the output of these units.

"We have enjoyed a very successful presence at the existing Old Ocean facility for more than 15 years and are excited to have this opportunity to expand our relationship with Chevron Phillips Chemical and our presence in the local area," Steve Dedman, Zachry senior vice president said. "We know how important this project is to our customer and we look forward to combining our capabilities with those of our partner and customer to deliver a successful project characterized by its safety, quality and predictability." The economic impact generated from this endeavor is significant; over 400 long-term direct jobs and 10,000 engineering, construction and fabrication jobs will be created as a result of the Chevron Phillips Chemical USGC Petrochemicals Project.