Chevron Phillips Studying Ethylene Cracker Amid Gas Glut

Chevron (CVX) Phillips Chemical Co., a joint venture of Chevron Corp. and ConocoPhillips (COP), 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.

To contact the reporter on this story: Joe Carroll in Chicago at

To contact the editor responsible for this story: Susan Warren at

Press spacebar to pause and continue. Press esc to stop.

Bloomberg reserves the right to remove comments but is under no obligation to do so, or to explain individual moderation decisions.

Please enable JavaScript to view the comments powered by Disqus.