The decision follows the receipt of final environmental regulatory approval for the petrochemical project in June 2019
ExxonMobil and SABIC have decided to go ahead with the construction the Gulf Coast petrochemical project in San Patricio County, Texas.
The decision follows the receipt of final environmental regulatory approval by the joint venture of the two companies in June 2019.
The joint venture was given permission to build an a 1.8 million metric tonne ethane steam cracker, two polyethylene units and a monoethylene glycol unit.
Construction on the project is scheduled to start in the third quarter of 2019 and startup is expected by 2022.
ExxonMobil chairman and chief executive officer Darren Woods said: “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.
“It is one of several key projects that provide the foundation for significantly increasing the company’s earnings potential.”
The Gulf Coast petrochemical project
In May 2018, SABIC and ExxonMobil created a new joint venture called Gulf Coast Growth Ventures to advance development of the project.
With ExxonMobil as site operator, the Gulf Coast Growth Ventures project is owned by ExxonMobil and SABIC, with each holding 50% stake.
The project is expected to create more than 600 permanent jobs with average annual salaries of $90,000 per year. During the construction phase, it is anticipated to create additional 6,000 jobs.
According to a preliminary independent study, conducted by Impact DataSource, the project is estimated to generate more than $22bn (£17.3bn) in economic output during construction and $50bn (£39.4bn) in economic benefits during the first six years of operation.
The Wood Group, McDermott & Turner Industries Group, Chiyoda & Kiewit and Mitsubishi Heavy Industries & Zachry Group are the four engineering, procurement and construction companies that will responsible for the project construction.
SABIC vice chairman and CEO Yousef Al-Benyan said: “SABIC is very pleased to move forward on this third joint venture with ExxonMobil – the first to be operated outside of Saudi Arabia.
“This project will not only increase global diversification for our company, but will also continue to create value within our new home of San Patricio County through creating jobs and supporting economic growth.
“With this project, we look forward to further building our business presence in the U.S. and serving the communities and customers in the North and South American markets even more effectively.”