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Saudi Basic Industries Corporation (SABIC) and ExxonMobil have agreed to set up a potential petrochemical joint venture (JV) project in the county of San Patricio, Texas.
“This step was taken as part of the required procedures carried out before making a decision on establishing the project,” the Saudi petrochemical giant said in a statement on Wednesday.
The project will include a 1.8 mta ethylene production unit, which will supply ethylene to other units to produce ethylene derivatives.
The two parties will study the project further and are expected to reach a final decision on it next year.
“We are focused on geographic diversification to supply new markets,” Yousef Al-Benyan, SABIC vice-chairman and CEO, said in the statement.
“The proposed venture would capture competitive feedstock, capitalize on the growing global demand for ethylene-based products, and reinforce SABIC’s strong position in the value chain,” he added.
SABIC first said it was mulling the JV with the US-based oil major in July last year.
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