By February 24, 2016 1 Comments Read More →

Petrochemicals benefits as global middle class grows to 5 billion by 2030 – Chevron Phillips

New middle class consumers will fuel demand for plastic products such as packaging – Chevron Phillips

Chevron Phillips Chemical thinks the global middle class will expand rapidly to five billion by 2030, creating a robust market for plastics and other materials that use petroleum as a feedstock.

Chevron Phillips

2017 start-up of $6 billion U.S. Gulf Coast petrochemicals project that includes a 1.5 million metric-ton-per-year ethane cracker and two world-scale polyethylene units. Photo: Supplied.

“We have an enthusiastic long-term view for petrochemicals thanks to a one-two combination of strong global demand and competitive feedstocks from the U.S. shale resource boom,” said Mark Lashier, Chevron Phillips Chemical Company LP’s executive VP during a panel discussion at IHS CERAWeek in Houston as he outlined the company’s growth strategy.

Chevron Phillips says that by 2030, the global middle class is predicted to grow to nearly 5 billion people from under 2 billion today, according to the United Nations.

“The economic growth that accompanies this rise of the middle class will fuel demand for plastic consumer products, meaning billions of people will have access to better quality-of-life products such as flexible packaging to store and transport food and beverages, enabling modern living,” said Lashier.

To begin accommodating the demand, Chevron Phillips Chemical is focused on the mid-2017 start-up of its $6 billion Texas Gulf Coast petrochemicals project, which includes a 1.5 million metric-ton-per-year ethane cracker that will produce ethylene and two world-scale polyethylene units that will each produce 500,000 metric tons of resin every year.

Chevron Phillips

Mark Lashier, Chevron Phillips Chemical Company. Photo: supplied.

Ethylene derivatives are a key ingredient in plastics manufacturing, particularly for polyethylene, one of the world’s most common types of plastic.

Polyethylene is found in film, packaging and containers, from bottles to pails. Lashier says the new polyethylene units will allow Chevron Phillips to become a bigger player in merchandise bags while expanding its capability in flexible packaging and high-performance pressure pipe applications.

The company is concentrating on industry-wide efforts such as building a solid pipeline of skilled talent to ensure the future success of the industry and urging investment in North American infrastructure to ensure supply chains remain competitive.

“While we may need to take a deep breath as the global economy settles, we are convinced that we are on the verge of a growth curve,” Lashier continued.

“Demand for the chemicals and plastics business is strong, compelling us to continue to search the globe for the next major investment.”

Posted in: News

1 Comment on "Petrochemicals benefits as global middle class grows to 5 billion by 2030 – Chevron Phillips"

Trackback | Comments RSS Feed

Post a Comment