Strong Global Demand for Petrochemicals Fuels Optimism, says Chevron Phillips Chemical’s EVP at IHS CERAWeek
Operating within the challenge and uncertainty of the current energy environment, Chevron Phillips Chemical Company LP’s Executive Vice President Mark Lashier outlines the company’s growth strategy at IHS CERAWeek in Houston, Texas.
During a panel discussion, Lashier said, “We have an enthusiastic long-term view for petrochemicals thanks to a one-two combination of strong global demand and competitive feedstocks from the U.S. shale resource boom.” By 2030, the global middle class is predicted to grow to nearly 5 billion people from under 2 billion today, according to the United Nations.
“The economic growth that accompanies this rise of the middle class will fuel demand for plastic consumer products, meaning billions of people will have access to better quality-of-life products such as flexible packaging to store and transport food and beverages, enabling modern living,” said Lashier.
To begin accommodating the demand, Chevron Phillips Chemical is focused on the 2017 start-up of its $6 billion U.S. Gulf Coast Petrochemicals Project, which includes a 1.5 million metric-ton-per-year ethane cracker which will produce ethylene and two world-scale polyethylene units that will each produce 500,000 metric tons of resin every year along the Texas Gulf Coast. Ethylene derivatives are a key ingredient in plastics manufacturing, particularly for polyethylene, one of the world’s most common types of plastic. Polyethylene is found in film, packaging and containers, from bottles to pails. The new polyethylene units will allow Chevron Phillips Chemical to become a bigger player in merchandise bags while expanding its capability in flexible packaging and high-performance pressure pipe applications.
In addition to being focused on starting up its new manufacturing assets next year, the company is concentrating on industry-wide efforts such as building a solid pipeline of skilled talent to ensure the future success of the industry and urging investment in North American infrastructure to ensure supply chains remain competitive. “While we may need to take a deep breath as the global economy settles, we are convinced that we are on the verge of a growth curve,” Lashier continued. “Demand for the chemicals and plastics business is strong, compelling us to continue to search the globe for the next major investment.”
(Chevron Phillips Chemical Company Press Release)