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Chevron Phillips Chemical Receives Final Approval to Build USGC Petrochemicals Project and Awards EPC Contracts

  Chevron Phillips Chemical Receives Final Approval to Build USGC
  Petrochemicals Project and Awards EPC Contracts

Business Wire

THE WOODLANDS, Texas -- October 3, 2013

Chevron Phillips Chemical Company LP (Chevron Phillips Chemical) is pleased to
announce it received board approval to execute the US Gulf Coast (USGC)
Petrochemicals Project first announced in March 2011.

Additionally, the company awarded an engineering, procurement and construction
(EPC) contract to a joint venture between JGC (USA), Inc. and Fluor
Enterprises, Inc. to execute the 1.5 million metric tons/year (3.3 billion
pounds/year) ethane cracker portion of the project. The company has also
awarded an EPC contract to Gulf Coast Partners, a partnership between Technip
USA Inc. and Zachry Industrial, Inc., to execute the two new polyethylene
facilities, each with an annual capacity of 500,000 metric tons (1.1 billion
pounds).

“We remain in the first mover position as we take another critical step in
executing a project that will benefit our customers, suppliers, local
communities and existing and future employees,” said Pete Cella, president and
chief executive officer of Chevron Phillips Chemical. “We are able to realize
this important milestone thanks to continued strong growth in demand for our
products, shale resource development in the United States, and the tremendous
support of our owners.”

The state-of-the-art, world-scale polyethylene units will be capable of
producing a wide variety of high and linear low density polyethylene products
including bimodal and metallocene-based polyethylene polymers. These
facilities will incorporate Chevron Phillips Chemical’s leading edge
metallocene technology and proprietary Advanced Dual Loop bimodal technology.

In addition to the bimodal and linear low density products, the flexibility of
these units will allow for growth of current blow molding, injection molding
and film grades offered by Chevron Phillips Chemical. Sold under the
long-established brand names of Marlex® resins for rigid packaging and
extrusion applications and Marflex® resins for film and extrusion coating
applications, the new production facilities will be complemented by expansion
of Chevron Phillips Chemical’s Technical Service capability offering
sustainable solutions in a wide variety of applications ranging from flexible
packaging to high performance pressure pipe.

The ethane cracker will be built at Chevron Phillips Chemical’s Cedar Bayou
plant in Baytown, Texas, and two polyethylene units will be built at a site in
Old Ocean, Texas, near Chevron Phillips Chemical’s Sweeny plant. The USGC
Petrochemicals Project is expected to commence construction in early 2014 and
create approximately 400 long-term direct jobs and 10,000 engineering and
construction jobs.

Site preparation is in progress, critical equipment for the project has been
ordered, expansion of the supporting infrastructure has commenced and the
company has executed a contract for the fabrication of the rail cars needed to
supply product to our customers. “Overall, this project aligns perfectly with
Chevron Phillips Chemical’s strategy of profitable growth, competitive
advantage, operational excellence and organizational capability, and we look
forward to a successful and safe startup in 2017,” said Cella.

In August 2013, Chevron Phillips Chemical announced that the company had
received the cracker’s Environmental Protection Agency (EPA) greenhouse gas
permit and the required Texas Commission on Environmental Quality (TCEQ) air
permits necessary to commence construction of both facilities.

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 38 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

Contact:

Chevron Phillips Chemical Company LP
Linda Koenig, 832-813-4220
koenili@cpchem.com
 
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