ExxonMobil, SABIC to proceed with Gulf Coast Growth Ventures project
New facility to include 1.8 million metric ton ethane steam cracker
Investment to create 6,000 jobs during construction, 600 permanent jobs
Economic output to exceed $22 billion during construction and $50 billion during first six years
“Building the world’s largest steam cracker, with state-of-the-art technology, on the doorstep of rapidly growing Permian production gives this project significant scale and feedstock advantages,” said Darren W. Woods, chairman and chief executive officer of ExxonMobil. “It is one of several key projects that provide the foundation for significantly increasing the company’s earnings potential.
The joint-venture between ExxonMobil and SABIC, called Gulf Coast Growth Ventures, received final environmental regulatory approval in June 2019 to build an ethane steam cracker, two polyethylene units and a monoethylene glycol unit. Construction will begin in the third quarter of 2019 and startup is anticipated by 2022.
“SABIC is very pleased to move forward on this third joint venture with ExxonMobil – the first to be operated outside of Saudi Arabia,” said SABIC Vice Chairman and CEO Yousef Al-Benyan.
The project is expected to create more than 600 permanent jobs with average annual salaries of $90,000 per year. An additional 6,000 high-paying jobs will be created during construction.
The facility will produce materials used in the manufacturing of various consumer products including automotive coolants, packaging, agricultural film and building, construction materials and clothing.
Project construction will be led by four primary engineering, procurement and construction companies: The Wood Group, McDermott & Turner Industries Group, Chiyoda & Kiewit and Mitsubishi Heavy Industries & Zachry Group.
Gulf Coast Growth Ventures is a unique opportunity created by the abundance of low cost U.S. natural gas, and is part of ExxonMobil’s Growing the Gulf initiative initiative, which outlined plans to build and expand manufacturing facilities along the U.S. Gulf Coast, creating more than 45,000 high-paying jobs across the region.
The project is part of SABIC’s growth strategy to build new petrochemical facilities in key markets, including the Americas, to address industry demand and achieve the company’s 2025 strategy.
Ownership interests in the Gulf Coast Growth Ventures project is 50 % ExxonMobil and 50 % SABIC, with ExxonMobil as site operator.
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