ExxonMobil, SABIC to proceed with USGC petchem project

SABIC and ExxonMobil are proceeding with their previously announced plan to build the Gulf Coast Growth Ventures project, a 1.8 million-tonne/year ethane cracker currently planned for construction in San Patricio County, Tex. The ExxonMobil-SABIC joint venture has received final environmental regulatory approval to proceed with construction of the GCGV project, which will include an ethane steam cracker, two polyethylene units, and a monoethylene glycol unit.

Saudi Arabian Basic Industries Corp. (SABIC) and ExxonMobil Corp. are proceeding with their previously announced plan to build the Gulf Coast Growth Ventures (GCGV) project, a 1.8 million-tonne/year ethane cracker currently planned for construction in San Patricio County, Tex. (OGJ Online, July 25, 2016).

The ExxonMobil-SABIC joint venture has received final environmental regulatory approval to proceed with construction of the GCGV project, which will include an ethane steam cracker, two polyethylene units, and a monoethylene glycol unit, ExxonMobil said.

Construction will begin in this year’s third quarter, with startup slated for 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,” said Darren W. Woods, ExxonMobil’s chairman and chief executive officer.

The complex will produce materials used in the manufacturing of various products including automotive coolants, packaging, agricultural film and building, construction materials, and clothing.

Without disclosing further details regarding the individual contracts, ExxonMobil confirmed project construction will be led by four primary engineering, procurement, and construction companies including John Wood Group PLC; a consortium of McDermott International Inc. and Turner Industries Group LLC; a consortium of Chiyoda Corp. and Kiewit Corp.; and a consortium of Mitsubishi Heavy Industries Ltd. and Zachry Group.

Project background

Project permitting 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 (OGJ Online, May 7, 2018; Apr. 19, 2017).

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 (OGJ Online, Mar. 9, 2017).

A preliminary independent study, conducted by Impact DataSource LLC, estimates the project will generate more than $22 billion in economic output during construction and $50 billion in economic benefits during the first 6 years of operation, ExxonMobil said.

Contact Robert Brelsford at rbrelsford@endeavorb2b.com.

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