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ExxonMobil, Sabic proceeding with chemical plant construction in Texas

Construction of the chemical facility and a 1.8 million metric ton ethane steam cracker in San Patricio County, Texas will begin in the third quarter of 2019 and startup is anticipated by 2022.


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June 17, 2019 by Canadian Plastics

Global chemical makers ExxonMobil Chemical Co. and Sabic Innovative Plastics are proceeding with the construction of a chemical facility and a 1.8 million metric ton ethane steam cracker in San Patricio County, Texas.

The two companies made the announcement in a June 13 press release, days after the joint venture between ExxonMobil and Sabic – called Gulf Coast Growth Ventures – received final environmental regulatory approval 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.

“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,” Darren W. Woods, chairman and CEO of ExxonMobil, said in the statement. “It is one of several key projects that provide the foundation for significantly increasing the company’s earnings potential.”

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.

Ownership interests in the Gulf Coast Growth Ventures project is 50 per cent ExxonMobil and 50 per cent Sabic, with ExxonMobil as site operator.

The project is expected to create more than 600 permanent jobs, each paying an average salary of $90,000 per year.

A preliminary independent study, conducted by Impact DataSource, estimates the project will generate more than $22 billion in economic output during construction and $50 billion in economic benefits during the first six years of operation.