Chevron Phillips Chemical Company Achieves Mechanical Completion of Ethane Cracker at Cedar Bayou

This major milestone brings Chevron Phillips Chemical closer to final
completion of its U.S. Gulf Coast petrochemical project

THE WOODLANDS, Texas–(BUSINESS WIRE)–Chevron Phillips Chemical Company LP (Chevron Phillips Chemical)
announced today that its world-scale ethane cracker at Cedar Bayou in
Baytown, Texas successfully achieved the major milestone of mechanical
completion. The unit is now undergoing a series of rigorous
commissioning activities, system checks and final certifications to
ensure a safe and reliable start-up, and consistent, on-spec production.
Once operational, the unit is expected to produce at least 1.5 million
metric tons of product annually. At peak construction, approximately
5,000 workers were employed on this project, helping to spawn additional
economic activity across the region.

“With the mechanical completion of Cedar Bayou’s ethane cracker, we are
now on the cusp of completing the most transformative project in our
company’s history, our U.S. Gulf Coast petrochemical project,” said Mark
Lashier, president and chief executive officer of Chevron Phillips
Chemical. “I want to thank our employees, contractors, and the community
of Baytown for helping make this milestone possible.”

The new ethane cracker will produce valuable product for the company’s
ethylene business and feedstock for its ethylene derivatives businesses.
The polyethylene (PE) fleet now includes the two new PE units at Old
Ocean, Texas, which were also part of the U.S. Gulf Coast petrochemical
project (USGC PP). These units started up in September 2017 and play a
critical role in Chevron Phillips Chemical’s strategic expansion to meet
the growing global demand for PE. These units can produce a wide variety
of high quality Marlex® polyethylene resins ranging from metallocene
LLDPE film to bi-modal film and pipe products, displaying the wide
capability of Chevron Phillips Chemical Company’s proprietary MarTech®
technology.

In addition to the cracker and PE units, the company has purchased
nearly 3,000 newly built rail cars and constructed a state-of-the-art
storage-in-transition facility to ship polyethylene via rail to
customers both domestically and to ports for export around the globe.

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 $16.5 billion in assets, including 33 manufacturing and
research facilities in seven 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.

Contacts

Chevron Phillips Chemical Company LP
Kristina Baum, 832-813-4651
[email protected]