A $6 billion mega-petrochemical complex is going to be built in Qatar, Chevron Phillips Chemical ( NYSE:CVX ) ( NYSE:PSX ) and QatarEnergy announced a final investment decision on Sunday.
The massive integrated olefins and polyethylene complex at Ras Laffan Industrial City will, according to QatarEnergy, be the largest investment in the company’s history. QatarEnergy will own 70% of the project, with the joint venture between Chevron and Phillips 66 owning the other 30%.
According to QatarEnergy, the complex will start producing ethylene in 2026 and will include an ethane cracker with a 2.1M metric ton/year capacity, making it “the largest in the Middle East and one of the largest in the world,” as well as two polyethylene trains that will produce a combined 1.7M tons/year of high-density polyethylene polymer products, bringing the total petrochemical production capacity to almost 14M tons/year.
In a recent research article published on Seeking Alpha, Leo Nelissen notes that Phillips 66 “has a high yield, solid and rising free cash flow used to support high dividend growth and a balance sheet that allows aggressive buyback.”
Oil prices start out in 2023 in the mid-$70s, or around where they were at the beginning of 2022. Over the past year, they have been everything but steady. After Russia invaded Ukraine, crude oil surged to a high of $120 but eventually fell on worries that the world economy would sputter.
Chevron Stock Analyzed
What will happen with oil prices this year is anyone’s guess. Some analysts predict that oil will return to the triple digits, while others think that if a recession occurs, petroleum prices may decline. Making investment decisions in the en...
Click here to read the full article on PressReach.com .Subscribe to the PressReach RSS feeds:
- Featured News RSS feed
- Investing News RSS feed
- Daily Press Releases RSS feed
- Trading Tips RSS feed
- Investing Videos RSS feed
Follow PressReach on Twitter
Follow PressReach on TikTok
Follow PressReach on Instagram
Subscribe to us on Youtube