2022 Deal Of The Year: Silver Award

Orange County Economic Development Corporation in Texas earned the 2022 Silver Deal of the Year award for Chevron Phillips' $8B integrated polymers facility, a joint venture with QatarEnergy named Golden Triangle Polymers Company LLC.

2022 Deal of the Year
(Photo: Adobe Stock)
By Anne Cosgrove
From the January / February 2023 Issue

Silver Award Chevron PhillipsSilver Award

Orange County Economic Development Corporation: Along Texas’ Gulf Coast, Chevron Phillips Chemical solidifies it roots with an $8 billion integrated polymers facility, in a joint venture with QatarEnergy named Golden Triangle Polymers Company LLC.

More than six years ago, Chevron Phillips took interest in Orange County, Texas recognizing an opportunity to expand its footprint along the Gulf Coast, capitalizing on the developing polyethylene market. The existing Chevron Phillips Chemical site has been a fixture in Orange County since its construction by Spencer Chemicals in 1954. Gulf Oil, a predecessor of CP Chem, purchased the facility in 1963, and since that time, CP Chem and its employees, have been integral members of this community.

In November 2022, Chevron Phillips Chemical and QatarEnergy announced their decision to construct an $8 billion, 1,700-acre facility in Orange County. The integrated polymers facility in Orange, TX will be operated by the companies’ joint venture, Golden Triangle Polymers Company LLC, named for the Golden Triangle region of Texas. Chevron Phillips Chemical owns a 51% equity share in the joint venture and QatarEnergy owns 49%. The investment toward the facility is expected to create more than 500 full-time jobs and approximately 4,500 construction jobs and generate an estimated $50 billion for the community in residual economic impacts.

Silver Award Chevron Phillips
Site of Chevron Phillips Chemical integrated polymers facility, joint venture with QatarEnergy. (Photo: Chevron Phillips Chemical)

A project of this size and magnitude presents the opportunity to change the landscape of Orange County for generations.

A Chapter 312 tax abatement agreement was approved by Orange County Judge and Commissioners for a period of 10 years at 100% abatement on the eligible improved value. In order to apply for economic development incentives, Orange County requires an abatement application from the company identifying the nature of the project as well as the location on which the project would be located, an independent third-party economic impact study, and an application fee. Estimated taxable value to be added to the rolls prior to the start of the abatement (January 1, 2024) and remain on the rolls during the term of the abatement is $200 to $400 million.

The total economic output to be generated in the area from Chevron Phillips operations over the first 20 years is over $51 billion. Direct net benefits to the County during that same period is over $170 million. Estimated total payments to West Orange Cove CISD from CP Chem and new residents is more than $515 million. The City of Orange, Drainage District, Port, all communities will see net benefits. Estimated taxable spending during the construction of the facility is more than $206 million which includes the purchase of construction materials as well as direct and indirect construction worker spending.

Critical in the negotiation of this agreement was opportunity for local suppliers, contractors, and employment. CP Chem agrees to give preference and priority to qualified local manufacturers, suppliers, vendors, subcontractors and labor. As a result, the economic impact of direct, indirect and induced revenues for businesses in the area total over $5 billion during the construction phase.

CP Chem is also assisting with county infrastructure. Their site drainage plan accounts for not only their own runoff to ensure zero impact but has been designed to improve existing drainage infrastructure. The City of West Orange was awarded a $5 million grant from the U.S. Economic Development Administration to support design and construction of a new wastewater treatment plant.

  • Creation of 500 jobs, and 4,500 construction jobs.
  • Total economic output generated in the area from operations over first 20 years is over $51 billion.
  • Estimated taxable value added to the rolls prior to star of tax abatement (January 1, 2024) and remain on the rolls during the term abatement: $200 to $400 million.

There are also goodwill benefits that CP Chem participates in as a company. In Orange County already, they have contributed over $100,000 in disaster recovery funds. They are an annual contributor to the United Way campaign.

The Orange County Economic Development Corporation, elected officials, Orange County businesses, property owners and citizens have worked tirelessly to recruit CP Chem’s investment to Orange County. Also instrumental were City of Orange Economic Development Corporation, Entergy Texas, local municipalities, City Managers, Orange County Commissioners and Orange County Judge’s Office.

Learn more about our 2022 Economic Development of the Year
Platinum, Gold, Bronze, and Impact Awards