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.
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