Picture: Guiseppe Barranco/The Enterprise, Picture Editor
ORANGE — A remaining choice by Chevron Phillips Chemical on whether or not to to speculate practically $6 billion for a brand new plant in Orange County has been delayed.
Jessica Hill, govt director of the Orange County Financial Growth Corp., on Tuesday confirmed that the choice was delayed on account of coronavirus and uncertainty within the oil market.
The choice remains to be anticipated in 2021, however Hill didn’t have a agency timeline but on what a part of the yr.
The corporate beforehand was anticipating to make a remaining choice late this yr or in early 2021.
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“Planning and progress remains to be shifting ahead, and we’re simply ready for his or her subsequent transfer,” Hill stated in an e-mail to The Enterprise.
A press release from Chevron Phillips Chemical stated the corporate is continuous with front-end engineering design for the venture.
“As with different capital-intensive actions, we’re carefully monitoring financial developments and moderating timing to protect optionality on this venture,” the assertion stated. “In mild of uncertainty created within the wake of the COVID-19 pandemic, our firm intends to defer a remaining funding choice whereas it revisits market circumstances and venture fundamentals.”
The Orange County Commissioners Courtroom earlier this yr permitted a 10-year, 100% tax break for the proposed funding.
If Orange County is in the end chosen as the location for the venture, the abatement settlement would turn into lively no later than Jan. 1, 2024.
The settlement requires Chevron Phillips, upon completion of development, to don’t have any fewer than 500 full-time staff, together with full-time contractors. The corporate additionally forecasts that as much as 10,000 non permanent jobs could be created in the course of the development section.
Elected officers on a number of events have referred to as the potential venture a “recreation changer” with the power to alter Orange County for generations.
The proposed facility would convert the pure gasoline liquid ethane into ethylene, the constructing block of most plastics.