Firms select site for proposed USGC petrochemical project

Saudi Arabian Basic Industries Corp. (SABIC) ExxonMobil Chemical Co. have selected a site in San Patricio County, Tex., as the possible location for a jointly owned petrochemical complex the companies hope to build at the US Gulf Coast

Saudi Arabian Basic Industries Corp. (SABIC) ExxonMobil Chemical Co. have selected a site in San Patricio County, Tex., as the possible location for a jointly owned petrochemical complex the companies hope to build at the US Gulf Coast (OGJ Online, July 25, 2016).

Still under study, the complex would house a 1.8 million-tonne/year ethane cracker and derivative units, including a monoethylene glycol unit as well as two polyethylene units, ExxonMobil and SABIC said.

Without disclosing further details regarding the specific site selected for the project, with that process now completed, the companies said they will apply to the Texas Commission on Environmental Quality (TCEQ) for necessary air and wastewater permits.

ExxonMobil and SABIC independently plan to reach final investment decisions on the proposed multibillion-dollar project after receiving all required TCEQ permits.

While the companies did not indicate a definitive timeline for the complex or its estimated cost, ExxonMobil did confirm it is one of 11 proposed projects included as part of its 10-year, $20-billion Growing the Gulf expansion initiative announced earlier this year (OGJ Online, Mar. 9, 2017).

Siting of the complex at the US Gulf Coast would 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.

Contact Robert Brelsford at rbrelsford@ogjonline.com.

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