SABIC and ExxonMobil have created a new joint venture to advance the development of the Gulf Coast Growth Ventures project, a 1.8 million tonne ethane cracker currently planned for construction in San Patricio County, Texas, U.SA. 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 said.
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. The Saudi Arabian government owns 70% of SABIC shares, with the remaining 30% publicly traded on the Saudi stock exchange. SABIC has more than 34,000 employees worldwide and operates in more than 50 countries.
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.”
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.