Chevron Phillips to decommission ethylene cracker, keep another idle

By the OGJ Online Staff

HOUSTON, Dec. 7 -- Chevron Phillips Chemical Co. LP will fully decommission the 400 million lb/year ethylene cracker at its Sweeny, Tex., chemical facility, and will continue to idle its 650 million lb/year cracker at Sweeny "for the foreseeable future."

The smaller cracker, called Unit 12, has not operated since December 2000 because of decreases in ethylene and ethylene derivative demand.

"A combination of the difficult market environment and pending capital requirements for environmental upgrades were the primary drivers for this decision," said Bruce Bush, General Manager of CPChem's Olefins and NGL Group.

However, "Unit 22 is a very competitive cracker and we expect it to return to service when the market situation improves," said Bush.

Chevron Phillips Chemical will reassign its employees working at the two units and will decrease contract manpower.

After Unit 12 is decommissioned, Chevron Phillips Chemical will have an ethylene production capacity of 7.6 billion lb/year, with 4.1 billion lbs/year at Sweeny and the remaining 3.5 billion lb/year equally divided between its Cedar Bayou and Port Arthur manufacturing sites.

This Friday announcement follows Chevron Phillips Chemical's plan to postpone the reopening of its Puerto Rican benzene and cyclohexane manufacturing operations indefinitely.

Related Articles

Chevron’s $35 billion capital budget down 13% from last year

01/30/2015 Chevron Corp. will allocate $35 billion in its capital and exploratory investment program for 2015, including $4 billion of planned expenditures by...

Chevron, BP, ConocoPhillips join to explore, appraise Gulf of Mexico leases

01/28/2015 Chevron Corp. subsidiary Chevron USA Inc., BP PLC unit BP Exploration & Production Inc., and ConocoPhillips Co. have pledged to work together t...

Gazprom Neft reviews progress on refinery modernization efforts

01/19/2015 The second phase of JSC Gazprom Neft's program to modernize and upgrade its Russian refineries to improve processing capacities, oil conversion rat...

Chevron makes oil discovery in deepwater gulf Anchor prospect

01/06/2015 Chevron Corp. reported a discovery of oil pay in multiple Lower Tertiary Wilcox sands in its Anchor prospect’s Green Canyon Block 807 Well No. 2, d...

Chevron, ONGC Videsh among firms awarded permits by New Zealand

12/22/2014 New Zealand's government has awarded six onshore permits across the Taranaki, West Coast, and East Coast basins, and nine offshore permits across t...

Canada Briefs

12/12/2014

Chevron, ONGC among companies awarded 15 exploration permits by New Zealand

12/09/2014 New Zealand’s government has awarded six onshore permits across the Taranaki, West Coast, and East Coast basins, and nine offshore permits across t...

CSB releases final report on Chevron Richmond refinery fire

11/17/2014 The US Chemical Safety Board (CSB) has issued the final regulatory report on its investigation of the August 2012 pipe rupture and ensuing fire at ...

Hess to develop deepwater gulf oil field

10/29/2014 Production is to begin in 2018 from deepwater Stampede oil field in the Gulf of Mexico under a development plan approved by operator Hess Corp. and...
White Papers

Three Tips to Improve Safety in the Oil Field

Working oil fields will always be tough work with inherent risks. There’s no getting around that. Ther...
Sponsored by

Pipeline Integrity: Best Practices to Prevent, Detect, and Mitigate Commodity Releases

Commodity releases can have catastrophic consequences, so ensuring pipeline integrity is crucial for p...
Sponsored by

AVEVA’s Digital Asset Approach - Defining a new era of collaboration in capital projects and asset operations

There is constant, intensive change in the capital projects and asset life cycle management. New chall...
Sponsored by

Transforming the Oil and Gas Industry with EPPM

With budgets in the billions, timelines spanning years, and life cycles extending over decades, oil an...
Sponsored by

Asset Decommissioning in Oil & Gas: Transforming Business

Asset intensive organizations like Oil and Gas have their own industry specific challenges when it com...
Sponsored by

Squeezing the Green: How to Cut Petroleum Downstream Costs and Optimize Processing Efficiencies with Enterprise Project Portfolio Management Solutions

As the downstream petroleum industry grapples with change in every sector and at every level, includin...
Sponsored by

7 Steps to Improve Oil & Gas Asset Decommissioning

Global competition and volatile markets are creating a challenging business climate for project based ...
Sponsored by

The impact of aging infrastructure in process manufacturing industries

Process manufacturing companies in the oil and gas, utilities, chemicals and natural resource industri...
Sponsored by
Available Webcasts


OGJ's Midyear Forecast 2015

When Fri, Jul 10, 2015

This webcast is to be presented by OGJ Editor Bob Tippee and Senior Economic Editor Conglin Xu.  They will summarize the Midyear Forecast projections in key categories, note important changes from January’s forecasts, and examine reasons for the adjustments.

register:WEBCAST


Predictive Analytics in your digital oilfield - Optimize Production Yield and Reduce Operational Costs

When Tue, Jul 7, 2015

Putting predictive analytics to work in your oilfield can help you anticipate failures, plan and schedule work in advance, eliminate emergency work and catastrophic failures, and at the same time you can optimize working capital and improve resource utilization.  When you apply analytic capabilities to critical production assets it is possible to reduce non-productive time and increase your yield.

Learn how IBM's analytics capabilities can be applied to critical production assets with the goal of reducing non-productive time, increasing yield and reducing operations costs.

register:WEBCAST



On Demand

Cognitive Solutions for Upstream Oil and Gas

Fri, Jun 12, 2015

The oil & gas sector is under pressure on all sides. Reserves are limited and it’s becoming increasingly expensive to find and extract new resources. Margins are already being squeezed in an industry where one wrong decision can cost millions. Analyzing data used in energy exploration can save millions of dollars as we develop ways to predict where and how to extract the world’s massive energy reserves.

This session with IBM Subject Matter Experts will discuss how IBM Cognitive Solutions contribute to the oil and gas industry using predictive analytics and cognitive computing, as well as real time streaming for exploration and drilling.

register:WEBCAST


The Alternative Fuel Movement: Four Need-to-Know Excise Tax Complexities

Thu, Jun 4, 2015

Discussion on how to approach, and ultimately embrace, the alternative fuel market by pulling back the veil on excise tax complexities. Taxes may be an aggravating part of daily operations, but their accuracy is crucial in your path towards business success.

register:WEBCAST


Careers at TOTAL

Careers at TOTAL - Videos

More than 600 job openings are now online, watch videos and learn more!

 

Click Here to Watch

Other Oil & Gas Industry Jobs

Search More Job Listings >>
Stay Connected