Chevron Phillips Chemical Co., a joint venture equally owned by Chevron Corp. (CVX) and ConocoPhillips (COP), will move forward with plans to build one of the first new ethylene production facilities in the U.S. since 2001.

The company selected its site in Baytown, Texas, for new factories to convert ethane into ethylene starting in 2017, The Woodlands, Texas-based Chevron Phillips said today in a statement. Shaw Energy & Chemicals Ltd. will design an ethylene plant, known as a cracker, capable of producing 1.5 million metric tons of the gaseous chemical a year.