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Saudi Basic Industries Corporation (SABIC) and ExxonMobil agreed on Tuesday to set up a new joint venture to advance development of the Gulf Coast Growth Ventures project, a 1.8 million tonne ethane cracker currently planned for construction in San Patricio County, Texas.
The project’s estimated cost reaches $7.3 billion, of which SABIC’s share is 50 percent. This sum will be financed from the petrochemical giant’s internal sources and other funding.
Expected to launch in H1 2022, the project includes a 1.8 million ton ethylene unit in San Patricio County, Texas, which will feed a monoethylene glycol unit and two polyethylene units.
The engineering, procurement and construction contracts for the project were awarded to Chiyoda Kiewit Joint Venture and CTCI McDermott.
Initial engineering and construction is expected to start during the second quarter of this year and expected to be completed during the fourth quarter of 2021.
The JV’s financial impact is expected to positively show on SABIC’s financial results after completion and commercial operations.
“The project reflects SABIC’s strategy to focus on geographical diversification to reach new global markets and enable the company to access competitive feedstock,” the statement said.
Construction of the project is pending regulatory approvals.
In April 2017, SABIC and ExxonMobil US Gulf Investment Company, a fully owned subsidiary of ExxonMobil, agreed to conduct a feasibility study on establishing the JV in Texas.
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SABIC, ExxonMobil pick Texas for potential JV |
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