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Academic MBA Question:

Case Study: US is set to construct the world’s
largest ethane cracker plant in the US Gulf Coast region. Qatar Petrochemical
(QP) and Chevron Phillips(CP) Chemical have signed an agreement to jointly
develop the project. The complex is expected to comprise a
1,900-kiloton-per-annum (KTA) ethane cracker and two high-density polyethylene
(HDPE) units with a combined capacity of 1,680 KTA. QP will own a 70% majority
share in the joint venture and CP Chem will hold the remaining 30% stake.
Chevron Phillips will also provide project management and oversight, and it
will be responsible for the operation and management of the facility. The
plant’s location will give it access to significant quantities of ethane
produced by US shale basins, including the prolific Permian Basin. The facility
will raise Qatar’s polyethylene production capacity by 82%. It will support an
estimated 9,000 jobs during the construction period, and once operational the
facility is expected to provide 600 full-time jobs. (Source: the US to build
the world’s largest ethane cracker plant by Teresia Njoroge – Jul 15, 2019,

US to build world’s largest ethane cracker plant


a. Discuss the factors that affect
plant location decisions. What are the key factors that may affect the ethane
cracker plant? (5 Marks)

b. Name the four major types of plant
layout. For the above project, what should be the ideal plant layout? (5 Marks)


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