ExxonMobil, SABIC to proceed with Gulf Coast Growth Ventures project
Irving (USA), June 13 – ExxonMobil and SABIC have announced their decision to move forward with the construction of a chemical facility and a massive ethane steam cracker in San Patricio County, Texas. This project is expected to create thousands of high-paying jobs and generate billions of dollars in economic output.
The construction of the Gulf Coast Growth Ventures project will include a 1.8 million metric ton ethane steam cracker, which is set to be the largest in the world. With cutting-edge technology and proximity to the rapidly growing Permian production, this project offers significant advantages in terms of scale and feedstock.
Darren W. Woods, chairman and CEO of ExxonMobil, expressed his excitement about the project, stating that it is one of several key initiatives that will substantially increase the company’s earnings potential.
The joint-venture between ExxonMobil and SABIC, called Gulf Coast Growth Ventures, has received final environmental regulatory approval to build an ethane steam cracker, as well as two polyethylene units and a monoethylene glycol unit. Construction is slated to begin in the third quarter of this year, and the facility is expected to start operations by 2022.
Yousef Al-Benyan, SABIC Vice Chairman and CEO, underscored the significance of this project, emphasizing that it will not only enhance global diversification for SABIC but also contribute to job creation and spurring economic growth in San Patricio County. Al-Benyan expressed SABIC’s commitment to further building their business presence in the U.S. market and serving customers more effectively in North and South America.
The Gulf Coast Growth Ventures project is projected to create over 600 permanent jobs, with an average annual salary of $90,000 per year. Additionally, during the construction phase, around 6,000 high-paying jobs will be generated. A preliminary independent study estimates that the project will yield over $22 billion in economic output during the construction period and generate $50 billion in economic benefits within the first six years of operation.
The facility will produce essential materials used in various consumer products, such as automotive coolants, packaging, agricultural film, and construction materials. The project’s construction will be led by four primary engineering, procurement, and construction companies, namely The Wood Group, McDermott & Turner Industries Group, Chiyoda & Kiewit, and Mitsubishi Heavy Industries & Zachry Group.
The Gulf Coast Growth Ventures project is a result of the vast availability of low-cost U.S. natural gas and is part of ExxonMobil’s Growing the Gulf initiative, which aims to expand manufacturing facilities along the U.S. Gulf Coast and create over 45,000 high-paying jobs in the region.
For SABIC, this project aligns with its growth strategy to build new petrochemical facilities in key markets, including the Americas, to meet industry demand and achieve the company’s 2025 strategy.
The ownership interests in the Gulf Coast Growth Ventures project are split evenly between ExxonMobil and SABIC, with ExxonMobil as the site operator.
With over 35 years of successful collaboration in petrochemical ventures, ExxonMobil and SABIC bring unmatched expertise to this project, further solidifying their international relationship.
In conclusion, the ExxonMobil and SABIC joint-venture, Gulf Coast Growth Ventures, is moving forward with the construction of a state-of-the-art chemical facility and a massive ethane steam cracker in Texas. This project is expected to have significant economic benefits, including the creation of thousands of high-paying jobs and billions of dollars in economic output, while also driving innovation and serving the demands of various industries.
