Exxon Mobil and SABIC signed an agreement to conduct a detailed study of the proposed jointly-owned petrochemical complex in San Patricio County in Texas and begin planning for front-end engineering and design work.
The agreement was signed during the Saudi-US CEO Forum in Riyadh in the presence of Yousef Al-Benyan, SABIC vice chairman and chief executive officer, and Philippe Ducom, president, chairman and chief executive officer of ExxonMobil Saudi Arabia Inc. Also in attendance were Prince Saud bin Abdullah bin Thenayan Al-Saud, SABIC chairman, and Darren W. Woods, chairman and chief executive officer of Exxon Mobil Corporation.
“This agreement represents an important step in the progression of the Gulf Coast Growth Ventures project,” said Ducom. “We have a long and successful relationship with SABIC, which will be enhanced by this potential project that will create value for our companies and our communities.”
In April 2017, ExxonMobil and SABIC selected a site in San Patricio County, Texas, for the proposed petrochemical complex that would include an ethane steam cracker capable of producing 1.8 million tonnes of ethylene per year, a monoethylene glycol unit and two polyethylene units. The San Patricio complex under study would be their first joint venture in the U.S.
The agreement covers conducting studies on the engineering design for the prospective petrochemical complex, as well as assessment of the project’s various technical and commercial aspects. It also covers the business mechanisms between both the companies in the coming period. The potential petrochemical complex is projected to have a world-class ethane cracker with a production capacity of 1.8 million tons of ethylene per year to feed a monoethylene glycol unit and two polyethylene units – subject to the outcome of the ongoing studies. A final decision on this project is expected to be made some time in 2018.
Yousef Al-Benyan, SABIC vice chairman and CEO praised the agreement, saying that it will contribute towards increased cooperation between SABIC and ExxonMobil. “It marks a new opportunity for the two companies to continue our historic collaboration, which goes back to 35 years, and builds on our long-term relationship. We hope this potential first-ever joint venture with ExxonMobil in the US will lead to additional promising projects that meet the aspirations of the leadership and peoples of Saudi Arabia and the US.”
In a statement Sabic said: "The potential project reflects SABIC's focus on geographic diversification to supply new markets. The proposed venture will capture competitive feedstock, capitalize on the growing global demand for ethylene-based products, allow SABIC to get closer to its customers, and reinforce its strong position in the value chain."