News: US-based petrochemical company Chevron Phillips Chemical Company has started the construction of its planned US Gulf Coast (USGC) Petrochemicals Project at the Cedar Bayou plant in Baytown, Texas. Chevron Phillips' USGC project includes building a 1.5mn metric tonnes (mt) a year ethane cracker at the Cedar Bayou facility in Baytown. The USGC project also includes building two polyethylene facilities with annual production capacity of 500,000mt in Old Ocean, Texas. The company's USGC Petrochemicals Project is expected to be completed in 2017.
BMI View: The US petrochemicals industry continues to expand on the back of growth in ethane availability as a result of shale gas exploitation. However, BMI's latest US Petrochemicals Report warns that the global market may not be able to absorb the level of planned output growth, while the domestic market will quickly become saturated. These factors provide considerable downside in the long term, with the potential for world-scale projects to be scaled back.