Chevron Phillips Chemical Co., a joint venture between Chevron Corp. (NYSE: CVX) and Phillips 66 (NYSE: PSX), is looking into developing a petrochemical plant in Iraq.
The Woodlands-based Chevron Phillips signed a letter of intent with the country to examine the feasibility of building a new plant and upgrading an existing petrochemicals facility owned by Iraq, Bloomberg reports.
Neither Chevron Phillips nor Iraq’s Industry and Minerals Ministry provided any additional details, such as cost estimates nor project dates, Bloomberg reports.
Data from BP Plc (NYSE: BP) shows Iraq has the fifth-largest crude reserves in the world and the fifth-largest natural gas deposits in the Middle East, Bloomberg reports. While the Iraq wants to diversify into chemicals productions and other industries, the country currently lacks infrastructure to use natural gas as a fuel for electricity plants or feedstock for petrochemicals.