SABIC and ExxonMobil evaluating petrochemical joint venture on U.S. Gulf Coast

SABIC and an affiliate of Exxon Mobil Corporation are considering the potential development of a jointly owned petrochemical complex on the U.S. Gulf Coast. The project would be located in Texas or Louisiana near natural gas feedstock and include a world-scale steam cracker and derivative units.

Before making final investment decisions, the companies will conduct necessary studies and work with state and local officials to help identify a potential site with adequate infrastructure access.

โ€œWe are focused on geographic diversification to supply new markets,โ€ said Yousef Abdullah Al-Benyan, SABIC vice chairman and chief executive officer. โ€œThe proposed venture would capture competitive feedstock and reinforce SABICโ€™s strong position in the value chain.โ€

โ€œWe have the capability to design a project with a unique set of attributes that would make it competitive globally. That is vitally important as most of the chemical demand growth in the next several decades is anticipated to come from developing economies,โ€ said Neil Chapman, president of ExxonMobil Chemical Company.

ExxonMobil and SABIC have worked together for 35 years in major chemical joint ventures in Saudi Arabia.