01-05-2018

SABIC and ExxonMobil create new JV for Gulf Coast project

SABIC and ExxonMobil  said today that they have created a new joint venture to advance  development of the Gulf  Coast Growth Ventures project, a 1.8 million tonne ethane cracker  currently planned for construction in San Patricio County, Texas. The facility will also include a monoethylene glycol unit and two polyethylene units.

“We are very pleased to announce the creation of what is now planned to  be the third joint venture between our two companies,” said SABIC vice  chairman and CEO Yousef Al-Benyan. “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. In addition, we  are proud of the role the project will play in enhancing the economic  profile of San Patricio County, Texas,” Al-Benyan stated.

SABIC is the operating partner for two long-standing joint ventures with ExxonMobil in the Kingdom of Saudi Arabia, Kemya in Jubail and Yanpet in  Yanbu.

Creation of the new joint venture represents a key milestone that allows the two companies to continue advancing the project, which is expected  to create 600 new, permanent jobs, about 3,500 indirect and induced jobs during operations, as well as 6,000 construction jobs during the peak of construction.

“The new joint venture expands our long relationship with SABIC and  builds on the success of several other joint projects,” said John  Verity, president of the ExxonMobil Chemical Company. “The project will  create value not only for both of our companies, but for the surrounding communities through the creation of jobs and economic growth. We appreciate the support we’re receiving, and look forward to continuing our conversations with San Patricio County residents and businesses as we progress.”
 
Construction of the project, announced in 2016, is pending completion of  the environmental permitting process. The plant is expected to be  operational in the 2021-2022 timeframe.