As Ryan said, talk to your advisor about it as soon as you can. I am pretty sure they will let you switch. I knew a guy who switched from ece to civil but that guy had to take non-engineering courses for 1 year and get a good gpa in order to transfer. The reason why he had to take them is because civil is a competitive program; however as far as i know, chemical isn't as competitive.
If your marks are suffering this term, no need to continue another term, you'll probably end up with a lower gpa.
If they do let you switch streams next term, take a look at the undergraduate calendar and see what are the 2nd term courses in chem eng that have no prerequisites. You can also take the rest of your electives to get rid of them.
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