press release

Chevron Chemical Announces Preliminary Work on Ethylene Expansion Project At Port Arthur, Texas

PORT ARTHUR, Texas, Sept. 25, 1995 -- Chevron Chemical Company today announced plans for engineering and other continuing preliminary work leading to an expected expansion and modernization of its ethylene production facilities here.

The project, which would increase ethylene production capacity at the plant from 1 billion pounds to 1.7 billion pounds-per-year, will receive corporate review later this year. If approved, Chevron would spend approximately $300 million on the project, which will not only expand capacity but also modernize the existing facility.

To continue its preliminary work, Chevron has awarded a contract to Stone & Webster to update an engineering package and cost estimates originally developed for Chevron in 1992. At that time, the ethylene project was placed on hold pending the sale of Chevron's Port Arthur refinery, which was later sold to Clark Refining and Marketing.

The process design for the project uses Stone & Webster's Advanced Recovery System technology.

"Our objective will be to complete as much work as possible before the unit shutdown for equipment modifications and tie-ins, which is expected near the end of 1997," said Plant Manager Gary Yesavage.

"This project will demonstrate the confidence Chevron Chemical has in its new operations here, and it will go a long way toward insuring the long-term viability of the company's presence in the Port Arthur community," he said.

Almost all the additional production from the expanded plant would be used to support Chevron Chemical's growing derivatives production, mainly polyethylene and normal alpha olefins. These products are raw materials that eventually are used in the manufacture of plastic bottles, garbage bags and other consumer products.

Several hundred construction jobs will be created over the next year, and the work will culminate with a force of almost 1,000 construction personnel for the year-end 1997 conversion. The expanded operation would result in about 22 additional operations and maintenance jobs at the Port Arthur plant, which currently employs nearly 240 Chevron personnel.

Chevron Chemical, headquartered in San Ramon, Calif., is a wholly owned subsidiary of Chevron Corporation.

Updated: September 1995