The Shaw Group Inc. has been awarded a contract by Chevron Phillips Chemical Company LP to license Shaw’s proprietary technology in designing a new ethylene plant in Baytown, Texas. The value of the contract was not disclosed.

The facility, at Chevron Phillips’ existing Cedar Bayou Plant, will be able to produce 1.5 million tons of ethylene per year.

The plant will use ethane feedstock derived from increased shale gas production.

“This project represents a significant change in the ethylene marketplace as no U.S. plants have been added in approximately ten years,” James Glass, president of Shaw’s Energy & Chemicals Group, said in a news release.

Shaw’s experience in designing and/or building more than 120 new ethylene units was a key factor, he said.

Ethylene is a major building block of alcohol- and plastic-based products, such as solvents and polymers