UPDATE 2-Power outage prompts flaring at Chevron Phillips' Baytown plant

(Updates throughout with company statement)

By Erwin Seba

BAYTOWN, Texas, July 26 (Reuters) - Chevron Phillips used the safety flare system at its Cedar Bayou chemical plant in Baytown, Texas, following a power outage, a company spokesperson said.

Thick black smoke was seen throughout the morning at the plant, located on the east side of the Houston metro area, according to a Reuters witness.

The smoke had started to dissipate by around noon local time (1700 GMT), the witness said.

The plant "experienced unplanned operational impacts due to loss of power from the utility provider," said company spokesperson April Andrews. "As a result, flaring and smoke are visible at the facility."

Safety flares are used to burn off hydrocarbons that cannot be processed normally when a refinery or chemical plant experiences an upset or outage.

Chevron Phillips is a joint venture between Chevron Corp and Phillips 66. (Reporting by Erwin Seba in Baytown; Writing by Liz Hampton in Denver; Editing by Bernadette Baum and Alistair Bell)