SABIC starts commissioning of JV with Exxon Mobil in US Gulf Coast

Logo of Saudi Basic Industries Corp. (SABIC)

Saudi Basic Industries Corp. (SABIC) started commissioning activities of the joint venture (JV) project with Exxon Mobil in the US Gulf Coast.

The project includes the establishment of an ethylene production unit with annual capacity of about 1.8 million tons, which will feed two polyethylene units and a monoethylene glycol unit, SABIC said in a bourse filing.

The project is expected to have a positive impact on SABIC’s consolidated financial statements. It is likely to appear after the project completion and commercial operation, which will be announced accordingly.

This project supports SABIC’s global growth strategy, diversifies its feedstock sources, and strengthens its petrochemical manufacturing presence in North America for a wide range of products, the giant petrochemical producer added.

In May 2018, SABIC and ExxonMobil agreed to set up a new JV to advance development of the Gulf Coast Growth Ventures project, a 1.8 million tons ethane cracker planned for construction in San Patricio County, Texas, Argaam earlier reported.

The project cost was estimated at $7.3 billion (SAR 27.4 billion).

In June 2019, SABIC announced obtaining the required permits, including environmental authorizations, to build the petrochemical plant.