News

Sabic, ExxonMobil form joint venture for Gulf Coast petrochemical production

The project, which will be in Portland, Texas, is expected to include a 1.8 million tonne ethane cracker, a monoethylene glycol unit and two polyethylene units.


Print this page

May 3, 2018 by Canadian Plastics

Chemical makers Saudi Basic Industries Inc. (Sabic) and ExxonMobil Chemical Co. have formed a joint venture designed to increase plastics and petrochemicals production on the U.S. Gulf Coast.

The project, which will be in Portland, Texas, is expected to include a 1.8 million tonne ethane cracker, a monoethylene glycol unit and two polyethylene units.

Exxon and Sabic announced in April 2017 that they had selected a site in San Patricio County, Texas, for the facility.

“The new joint venture expands our long relationship with Sabic and builds on the success of several other joint projects,” John Verity,  president of ExxonMobil Chemical, said in a press release. “The project will create value not only for both of our companies, but for the surrounding communities through the creation of jobs and economic growth.”

The new JV is expected to create 600 permanent jobs, about 3,500 indirect jobs and 6,000 construction jobs during the peak of construction. The start of construction on the project is pending completion of the environmental permitting process. The plant is expected to be operational sometime in 2021 or 2022. The project likely will cost about US$10 billion, reports say.

Sabic and ExxonMobil already have two long-standing joint ventures in Saudi Arabia. Sabic is the operating partner for both JVs: Kemya in Jubail and Yanpet in Yanbu.