Bloomberg News

Chevron Phillips Studying Ethylene Cracker Amid Gas Glut

February 24, 2012

(Adds Shell’s plan for a new cracker in third paragraph.)

Feb. 23 (Bloomberg) -- Chevron Phillips Chemical Co., a joint venture of Chevron Corp. and ConocoPhillips, is studying whether to build an ethylene-cracking plant on the U.S. Gulf Coast to process natural gas from shale fields.

The facility would “capitalize on advantaged feedstock sourced from emerging shale-gas developments,” San Ramon, California-based Chevron said in a U.S. Securities and Exchange Commission filing today.

The chemical company initially announced the feasibility study for a $5 billion cracker near Houston that would begin operations in 2017. A surfeit of gas from U.S. shale formations has pushed prices for the commodity to a 10-year low, prompting companies including Royal Dutch Shell Plc to pursue new cracker developments from the Appalachians to Texas.

--Editors: Charles Siler, Jasmina Kelemen

To contact the reporter on this story: Joe Carroll in Chicago at jcarroll8@bloomberg.net

To contact the editor responsible for this story: Susan Warren at susanwarren@bloomberg.net


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