Home / Businesswire / ExxonMobil, SABIC to Proceed with Gulf Coast Growth Ventures Project

ExxonMobil, SABIC to Proceed with Gulf Coast Growth Ventures Project

  • New facility to include 1.8 million metric ton ethane steam cracker
  • Investment to create 6,000 jobs during construction, 600 permanent jobs
  • Economic output to exceed $22 billion during construction and $50
    billion during first six years

IRVING, Texas & RIYADH, Saudi Arabia–(BUSINESS WIRE)–ExxonMobil
and SABIC today announced the decision to proceed with the construction
of a chemical facility and a 1.8 million metric ton ethane steam cracker
in San Patricio County, Texas, leading to thousands of high-paying jobs
and billions in economic output.

“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 W.
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 2019 to build an ethane steam cracker, two polyethylene
units and a monoethylene glycol unit. Construction will begin in the
third quarter of 2019 and startup is anticipated by 2022.

“SABIC is very pleased to move forward on this third joint venture with
ExxonMobil – the first to be operated outside of Saudi Arabia,” said
SABIC vice chairman and CEO Yousef Al-Benyan. “This project will not
only increase global diversification for our company, but will also
continue to create value within our new home of San Patricio County
through creating jobs and supporting economic growth. With this project,
we look forward to further building our business presence in the U.S.
and serving the communities and customers in the North and South
American markets even more effectively.”

The project is expected to create more than 600 permanent jobs with
average annual salaries of $90,000 per year. An additional 6,000
high-paying jobs will be created during construction. 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.

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.

Project construction will be led by four primary engineering,
procurement and construction companies: The Wood Group, McDermott &
Turner Industries Group, Chiyoda & Kiewit and Mitsubishi Heavy
Industries & Zachry Group.

Gulf Coast Growth Ventures is a unique opportunity created by the
abundance of low cost U.S. natural gas, and is part of ExxonMobil’s Growing
the Gulf
initiative, which outlined plans to build and expand
manufacturing facilities along the U.S. Gulf Coast, creating more than
45,000 high-paying jobs across the region.

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.

Ownership interests in the Gulf Coast Growth Ventures project is 50
percent ExxonMobil and 50 percent SABIC, with ExxonMobil as site
operator. ExxonMobil and SABIC bring unmatched expertise to this
project, having worked together in petrochemical ventures for more than
35 years. The Gulf Coast Growth Ventures project expands that successful
international relationship.

About ExxonMobil

ExxonMobil, the largest publicly traded international oil and gas
company, uses technology and innovation to help meet the world’s growing
energy needs. ExxonMobil holds an industry-leading inventory of
resources, is one of the largest refiners and marketers of petroleum
products, and its chemical company is one of the largest in the world.
For more information, visit www.exxonmobil.com
or follow us on Twitter at www.twitter.com/exxonmobil.


SABIC is a global leader in diversified chemicals headquartered in
Riyadh, Saudi Arabia. SABIC manufactures on a global scale in the
Americas, Europe, Middle East and Asia Pacific, making distinctly
different kinds of products: chemicals, commodity and high performance
plastics, agri-nutrients and metals. SABIC supports customers by
identifying and developing opportunities in key end markets such as
construction, medical devices, packaging, agri-nutrients, electrical and
electronics, transportation and clean energy. To learn more, visit www.sabic.com.

Cautionary Statement: Statements of future
events or conditions in this release are forward-looking statements.
Actual future results, including project plans, schedules, and
capacities; cost savings and efficiencies; growth in earnings potential;
integration benefits and other business results; and economic impacts
could differ materially due to factors such as changes in prices of oil,
gas, or petrochemicals and other market factors affecting the
petrochemical industry and the supply and demand for our products; the
occurrence and duration of economic recessions; timely completion of
construction projects; unforeseen technical or operating difficulties;
legal or regulatory events; the outcome of commercial negotiations; the
actions of competitors; and other factors discussed under the heading
Factors Affecting Future Results on the Investors page of our website at
exxonmobil.com. References to earnings potential do not represent
forecasts of actual future earnings which will depend in part on the
factors noted above.


ExxonMobil Media Relations

SABIC Media Relations