Consortium details contract award for ExxonMobil-SABIC petchem complex

A joint venture of SABIC and ExxonMobil has let a contract to a consortium of Chiyoda International and Kiewit Energy Group to provide engineering, procurement, and construction services for the JV’s recently approved Gulf Coast Growth Ventures project.

Jun 26th, 2019

A joint venture of Saudi Arabian Basic Industries Corp. (SABIC) and ExxonMobil Corp. has let a contract to a consortium of Chiyoda Corp. US subsidiary Chiyoda International Corp. and Kiewit Energy Group Inc. to provide engineering, procurement, and construction services for the JV’s recently approved Gulf Coast Growth Ventures (GCGV) project, a 1.8 million-tonne/year ethane cracking complex in San Patricio County, Tex., near Corpus Christi (OGJ Online, July 25, 2016).

The consortium’s scope of work on the contract covers EPC, include modular construction and transportation of units, for the entire project, Chiyoda said.

This latest contract follow’s the consortium’s earlier involvement since July 2017 in the project’s front-engineering design phase, according to the service provider.

A value of the contract was not disclosed.

Earlier this month, the ExxonMobil-SABIC JV received final environmental regulatory approval to proceed with construction of the GCGV project, which—alongside the ethane steam cracker and two polyethylene units—also will include a 1.1 million-tpy monoethylene glycol unit (OGJ Online, June 13, 2019).

Upon announcing regulatory approval, the JV also confirmed it has let EPC contracts for the GCGV project to John Wood Group PLC as well as a consortium of McDermott International Inc. and Turner Industries Group LLC (OGJ Online, June 19, 2019).

Project approval follows ExxonMobil and SABIC’s 2018 formation of the 50-50 GCGV JV—under which ExxonMobil will act as site operator—and the April 2017 selection of the San Patricio County site, which will allow ExxonMobil and SABIC to take advantage of the region’s existing infrastructure to capture competitive pricing for US natural gas feedstock as well as access to rising demand for ethylene-based products in overseas export markets.

Alongside forming part of SABIC’s growth strategy to build petrochemical installations in key markets—including the Americas—to address industry demand and achieve the company’s 2025 strategy, the proposed multibillion GCGV project also is one of the developments included as part of ExxonMobil’s 10-year, $20-billion Growing the Gulf expansion initiative announced in early 2017.

Contact Robert Brelsford at rbrelsford@endeavorb2b.com.

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