Chevron Phillips Chemical Marks Major Milestone of Its $6 Billion U.S. Gulf Coast Petrochemicals Project

Chevron Phillips Chemical Company LP (Chevron Phillips Chemical)
announced today that the two polyethylene (PE) units of its $6 billion
petrochemical investment on the U.S. Gulf Coast successfully achieved
the major milestone of mechanical completion. The PE units are now
undergoing a series of rigorous commissioning activities, system checks
and final certifications to ensure a safe and reliable start-up, and
consistent, high-quality production. Once operational, each PE unit will
produce at least 500,000 metric tons of product annually.

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“These new units allow us to utilize the abundant natural gas liquid
feedstocks provided by the development of shale resources in the United
States to meet the growing demand for polyethylene from our global
customers producing performance films, high-pressure pipe and
packaging,” said Peter Cella, president and chief executive officer of
Chevron Phillips Chemical. “The hard work of the project team and
thousands of engineering, procurement and construction workers, as well
as the terrific support from the community surrounding Old Ocean, have
made today possible.”

The PE units are in Old Ocean, Texas. Ethylene feedstock for the new
units will be supplied via the company’s ethylene pipeline and storage
system that was also expanded as part of this project. Along with the PE
units, the company purchased nearly 3,000 rail cars and constructed a
state-of-the-art rail facility with the capacity to store 1,500 rail
cars to ship PE pellets to customers around the world.

The final element of the company’s $6 billion U.S. Gulf Coast
Petrochemicals Project entails the construction of a new ethane cracker
in Baytown, Texas, that is expected to be completed in the fourth
quarter of 2017.

“Achieving mechanical completion of the PE units is a significant step
toward bringing the entire investment on line,” said Steve Prusak,
commercial director, U.S. Gulf Coast Petrochemicals Project. “We remain
focused on safely starting up these new assets and look forward to
completing the entire project in 2017.”

For more information about Chevron Phillips Chemical’s U.S. Gulf Coast
Petrochemicals Project, visit www.cpchem.com/usgc.

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 $15 billion in assets, including 33 manufacturing and
research facilities in seven 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.

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