- CPChem is one of the world’s largest producers of petrochemicals with 11 facilities in the United States, including this one in Borger, Texas. Produced chemicals are used to manufacture more than 70,000 products in a number of industries, including the adhesive, automotive, healthcare and cosmetic industries.
2007 Major Accomplishments
- CPChem broke ground on the construction of a 22 million pound-per-year Ryton® polyphenylene sulfide (PPS) manufacturing facility that will double the Borger, Texas, production capacity for the
engineering polymer business. - CPChem completed nearly 40 million work hours on CPChem’s 50-percent-owned styrene facility at Al-Jubail, Saudi Arabia. Commercial production is expected to commence during the third quarter of 2008.
- CPChem completed nearly 30 million work hours on the Q-Chem II project, which includes world-scale, state-of-the-art, high-density polyethylene and normal alpha olefins plants at Mesaieed, Qatar, and a separate joint venture for an ethylene cracker at Ras Laffan Industrial City. The plant is expected to be completed during the first half of 2009.
hevron Phillips Chemical Company LLC (CPChem), a joint venture in which ConocoPhillips owns a 50 percent interest, is valued for its ability to operate safely and reliably, deliver top value in its core businesses and advance major capital growth projects.
“These are exciting times for the company and our employees,” said Ray Wilcox, president and chief executive officer of CPChem. “We are expanding investment activity abroad and doubling Ryton® PPS production domestically. That means more opportunities for our employees and an overall bright outlook for 2008.”
In 2007, CPChem continued striving toward its goal of operating with zero injuries and incidents, finishing the year with a recordable incident rate of 0.56. CPChem also demonstrated its commitment to product and environmental sustainability by implementing numerous pollution-prevention and energy-efficiency projects at its facilities.
“Protecting our people and the environment is a way of life at CPChem,” Wilcox said. “We strive to serve as good stewards of the environment not because we want to earn awards, but because it’s the right thing to do.”
In addition to safety and environmental performance, CPChem has made strides in profitability. While the bulk of CPChem’s earnings come from its North American petrochemicals business, the company is committed to international growth and development, particularly in the Middle East, where it already has a major operating facility in Qatar, two in Saudi Arabia, and three new projects starting up in the future.
The company’s new project in Saudi Arabia will produce benzene, ethylbenzene, styrene and propylene, and it is expected to begin commercial production during the third quarter of 2008.
The other project in Saudi Arabia will include a world-class olefins cracker and will produce ethylene, propylene, polyethylene, polypropylene, polystyrene and 1-hexene. It has received board of directors approval; engineering, procurement and construction agreements are in place; and the project is scheduled for commissioning in 2011.
CPChem’s Q-Chem II project in Qatar will produce polyethylene and normal alpha olefins. It is currently under construction and expected to be commissioned during the first half of 2009.
“CPChem’s Middle East operations play a significant and growing role in the company’s success,” Wilcox said. “The capital projects under way are key to our company’s continued success and will provide us with reasonably priced feedstocks and access to growing markets.”
The ConocoPhillips Chemicals segment’s net income for 2007 was $359 million, down from $492 million in 2006, reflecting lower olefins and polyolefins margins.
