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The project reflects Sabic’s strategy to advance its growth in US.

Sabic, Exxon select site for US joint venture

RIYADH, April 20, 2017

Sabic and ExxonMobil Chemical Company have announced the selection of a site in San Patricio County, Texas, for potential development of a jointly-owned petrochemical complex – currently under study – on the US Gulf Coast.

The proposed multi-billion dollar investment would include a world-scale ethane steam cracker capable of producing 1.8 million tonnes of ethylene per year, which would feed a monoethylene glycol unit and two polyethylene units.

The project reflects Sabic’s strategy to advance the company’s growth in key markets such as the United States, said a statement.

“We are focused on geographic diversification to supply new markets,” said Yousef Al-Benyan, Sabic vice-chairman and CEO. “The proposed venture would capture competitive feedstock, capitalise on the growing global demand for ethylene-based products, and reinforce Sabic’s strong position in the value chain.

“This decision represents a significant milestone for both the local community and the state of Texas,” said Neil Chapman, president of ExxonMobil Chemical Company. “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.”

With site selection completed, ExxonMobil and Sabic will now apply for the necessary permits from the Texas Commission on Environmental Quality. Each company will make a final decision on the investment after the required permits have been granted, the statement said.

ExxonMobil and Sabic have worked together for 35 years in major chemical joint ventures in Saudi Arabia. The proposed project represents the companies’ first potential US-based joint venture. - TradeArabia News Service




Tags: sabic | US | ExxonMobil | petrochemicals |

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