Ingleside Ethylene, the 50/50 joint venture between Occidental Chemical (OxyChem) and Mexichem, today announced that construction of its ethylene cracker at OxyChem’s Ingleside, Texas, complex is underway.

With the launch of construction, the project remains on schedule to become commercially operational in the first quarter of 2017.

Senior management from both companies and Texas Land Commissioner-elect George P. Bush participated in a ceremony to celebrate the symbolic groundbreaking of the new ethylene cracker.

When completed, the cracker will have the capacity to produce 1.2 billion lb/year (550,000 cubic meters) of ethylene and provide OxyChem with an ongoing source of ethylene for manufacturing vinyl chloride monomer (VCM), which Mexichem will use to produce polyvinyl chloride (PVC resin) and PVC piping systems. 

“The ethylene cracker is a significant project for both OxyChem and Mexichem, enabling us to capitalize on the advantages that shale gas development presents for the chemical industry," said Robert Peterson, president of OxyChem. "It also helps our companies better compete globally in our respective markets."

The project will create approximately 1,700 jobs at peak construction and generate more than 150 permanent jobs.

OxyChem will operate the cracker upon completion.

“The Oxy-Mexichem joint venture is a vital part of our strategy to become a global vertically integrated specialty chemicals company with a focus on high-end products," said Antonio Carrillo, CEO of Mexichem. 

"Once operational, this cracker will provide a steady supply of ethylene, a key raw material for many of our most important products," he added. "We look forward to working with OxyChem in the coming years to complete the project."

Total investment in the project will be approximately $1.5 billion. In December 2013, Ingleside Ethylene awarded CB&I the engineering and construction contract to build the cracker. 

In May 2014, the plant received necessary permits for construction to begin from the US Environmental Protection Agency (EPA) and Texas Commission on Environmental Quality (TCEQ).