The project on the US Gulf Coast will be jointly owned by the companies, and will feature an ethane steam cracker with a production capacity of 1.8 million tonnes of ethylene per year.
Produced ethylene from the ethane steam cracker in turn would feed a monoethylene glycol unit and two polyethylene units, as per the partners.
Overall, the proposed petrochemical project is expected to result in thousands of jobs through the construction stage. Apart from that 600 new, full-time openings and 3,500 indirect roles are likely to be created once the petrochemical complex becomes operational.
The project is one of 11 projects proposed by the Houston-based ExxonMobil as part of a 10-year, $20bn program dubbed as Growing the Gulf.
ExxonMobil Chemical Company president Neil Chapman said: “This decision represents a significant milestone for both the local community and the state of Texas.
“We wish to thank local and state officials who have been instrumental in the site selection process, as well as everyone in the community who attended meetings to learn more about the project and provided us with constructive feedback.
“We will continue listening to local residents and businesses and look forward to continuing to work together.”
For the Saudi Arabia-based Sabic, the project is in line with its strategy to expand globally in important markets like the US.
Sabic vice chairman and CEO Yousef Abdullah Al-Benyan said: “We are focused on geographic diversification to supply new markets.
“The proposed venture would capture competitive feedstock, capitalize on the growing global demand for ethylene-based products, and reinforce Sabic’s strong position in the value chain.”
With site selection finalized, the partners will be seeking the necessary permits from the Texas Commission on Environmental Quality.
Each of the partners is expected to make a final decision on the project investment after receiving the necessary permits.
Image: Sabic and ExxonMobil will build a new petrochemical complex in Texas. Photo: courtesy of SABIC.
