Sabic and ExxonMobil Form JV to Advance US Petrochemical Project

Saudi Arabian chemicals maker, SABIC and ExxonMobil has announced the formation of a new joint venture (jv) to advance the $7.3-bn development of a 1.8-mtpa tonne ethane cracker in San Patricio County, Texas, US. Known as the Gulf Coast Growth Ventures project, the facility will also include a monoethylene glycol unit and two polyethylene units.

Construction of the project, announced in 2016, is pending completion of the environmental permitting process. The plant is expected to be operational in 2021-2022.

The collaboration is the third jv between SABIC and ExxonMobil with the other two being in Saudi Arabia at Kemya, Jubail, and Yanpet, Yanbu.

“The new joint venture expands our long relationship with SABIC and builds on the success of several other joint projects,” said Mr. John Verity, President of the ExxonMobil Chemical Company. SABIC Vice-Chairman and CEO, Mr. Yousef Al-Benyan added, “We look forward to the next phase of the project, which supports not only our goals for global diversification, but also supports Saudi Vision 2030. SABIC stated in a stock exchange filing that engineering and construction works will start in the second quarter of this year. Amec Foster Wheeler is the pro-ject’s main engineering, procurement and construction contractor.