Sabic (Riyadh, Saudi Arabia) and Exxon Mobil Corp. (Irving, TX) announced on Monday that they are evaluating the potential development of a jointly-owned petrochemical complex on the U.S. Gulf Coast.
If developed, the project would be located in Texas or Louisiana near natural gas feedstock and include a world-scale steam cracker and derivative units.
Before making final investment decisions, both parties will conduct necessary studies and partner with state and local officials to help determine a potential site with adequate infrastructure access.
“We are focused on geographic diversification to supply new markets,” said Yousef Abdullah Al-Benyan, Sabic Vice Chairman and Chief Executive Officer. “The proposed venture would capture competitive feedstock and reinforce Sabic’s strong position in the value chain.”
Neil Chapman, President of ExxonMobil Chemical Co., said: “We have the capability to design a project with a unique set of attributes that would make it competitive globally. That is vitally important as most of the chemical demand growth in the next several decades is anticipated to come from developing economies.”
ExxonMobil and Sabic have done business together for 35 years in major chemical joint ventures in Saudi Arabia.
Just days ago, Sabic’s Innovative Plastics unit, a major employer in the Berkshires, announced a $1 million endowment for the Berkshire United Way ahead of the company’s exit from Pittsfield, MA. The chemical manufacturer plans to vacate its Plastics Avenue site, which is owned by General Electric, by the end of 2016.