ExxonMobil and SABIC have decided to proceed with the construction of a chemical facility and a 1.8 million-metric-ton ethane steam cracker in San Patricio County, Texas.
The facility will produce materials used in the manufacturing of various consumer products, including automotive coolants, packaging, agricultural film and building, construction materials and clothing.
“Building the world’s largest steam cracker, with state-of-the-art technology, on the doorstep of rapidly growing Permian production gives this project significant scale and feedstock advantages,” said Darren Woods, chairman and chief executive officer of ExxonMobil. “It is one of several key projects that provide the foundation for significantly increasing the company’s earnings potential.”
The joint venture between ExxonMobil and SABIC, called Gulf Coast Growth Ventures, received final environmental regulatory approval in June to build an ethane steam cracker, two polyethylene units and a monoethylene glycol unit. The companies each own 50 percent of the Gulf Coast Growth Ventures project, with ExxonMobil as site operator.
The project is part of SABIC’s growth strategy to build new petrochemical facilities in key markets, including the Americas, to address industry demand and achieve the company’s 2025 strategy. The project will be SABIC’s third joint venture with ExxonMobil, and the first to be operated outside of Saudi Arabia.
A preliminary independent study, conducted by Impact DataSource, estimates the project will generate more than $22 billion in economic output during construction, and $50 billion in economic benefits during the first six years of operation.
Construction will begin in the third quarter of 2019 and start up is anticipated by 2022.
