News | June 12, 2014

Chevron Phillips Chemical Announces Mechanical Completion And Start-Up Of World's Largest 1-Hexene Plant

THE WOODLANDS, TEXAS--(BUSINESS WIRE)--

Chevron Phillips Chemical Company LP (Chevron Phillips Chemical) announced today the successful commissioning and start-up of the world’s largest on-purpose 1-hexene plant. With worldwide supply capabilities, the 1-hexene unit is capable of producing 250,000 metric tons (551,000,000 lbs.) per year and will enjoy significant advantages in infrastructure, feedstock availability and operational knowledge by its placement in the existing Cedar Bayou Chemical Complex in Baytown, Texas.

“Chevron Phillips is committed to being a consistent and reliable supplier for our customers,” said Mitch Eichelberger, general manager of Normal Alpha Olefins and Polyalphaolefins for Chevron Phillips Chemical. “With the start-up of this plant, we will enable our customers to expand their businesses and meet the growing worldwide demand for 1-hexene comonomers.”

“Our investment to expand 1-hexene production is due in part to Texas’ growth as a major international hub for the petrochemical industry and the increased supply of competitive feedstocks in the U.S. from the development of shale resources,” said Pete Cella, CEO of Chevron Phillips Chemical. “Only five years ago, the expectation was that the U.S. would become a significant net importer of ethylene derivatives. Now the U.S. is expecting to become a major exporter of ethylene derivatives, including 1-hexene, able to compete with any producing region in the world.”

The new plant is the third plant to utilize Chevron Phillips Chemical’s proprietary selective on-purpose 1-hexene technology, which produces comonomer grade 1-hexene from ethylene with exceptional product purity. 1-hexene is a critical component used in the manufacture of polyethylene, a plastic resin commonly converted into film, plastic pipe, detergent bottles, and food and beverage containers.

The proven technology is already successfully used at Qatar Chemical Company Ltd.’s (Q-Chem) facility in Mesaieed, Qatar, and 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.

About Chevron Phillips Chemical Company LP

Chevron Phillips Chemical Company LP is an indirect wholly-owned subsidiary of Chevron Phillips Chemical Company LLC, one of the world’s top producers of olefins and polyolefins and a leading supplier of aromatics, alpha olefins, styrenics, specialty chemicals, plastic piping and polymer resins. With approximately 5,000 employees, the LLC and its affiliates own more than $9 billion in assets, including 37 manufacturing and research facilities in eight countries. Chevron Phillips Chemical Company LLC is equally owned by Chevron U.S.A. Inc., an indirect wholly-owned subsidiary of Chevron Corporation, and by wholly-owned subsidiaries of Phillips 66, and is headquartered in The Woodlands, Texas.For more information about Chevron Phillips Chemical, visit www.cpchem.com. Also, follow us on Twitter: @chevronphillips.

Copyright Business Wire 2014

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