ExxonMobil and SABIC Select San Patricio County for Proposed Petrochemical Project on U.S. Gulf Coast
April 19 2017 - 9:00AM
Business Wire
- Facilities would include a 1.8 million
tonne per year ethane cracker and derivative units
- Part of ExxonMobil’s 10-year, $20
billion Growing the Gulf initiative
- Companies to begin working with
regulatory agencies to obtain necessary permits
ExxonMobil Chemical Company and SABIC each announced the
selection of a site in San Patricio County, Texas for potential
development of a jointly owned petrochemical complex on the U.S.
Gulf Coast.
The proposed multibillion dollar investment would include a
world-scale ethane steam cracker capable of producing 1.8 million
tonnes of ethylene per year, which would feed a monoethylene glycol
unit and two polyethylene units.
The proposed project, one of 11 ExxonMobil announced as part of
its 10-year, $20 billion Growing the Gulf initiative, is expected
to create thousands of jobs during the construction phase, as well
as 600 new, full-time jobs and 3,500 indirect jobs during
operations. It is also expected to generate more than $22 billion
in economic output during the construction phase and more than $50
billion in economic output during the first six years of
operations.
“This decision represents a significant milestone for both the
local community and the state of Texas,” said Neil Chapman,
president of ExxonMobil Chemical Company. “We wish to thank local
and state officials who have been instrumental in the site
selection process, as well as everyone in the community who
attended meetings to learn more about the project and provided us
with constructive feedback. We will continue listening to local
residents and businesses and look forward to continuing to work
together.”
With site selection completed, ExxonMobil and SABIC will now
apply for the necessary air and wastewater permits from the Texas
Commission on Environmental Quality. Each company will make a final
decision on the investment after the required permits have been
granted.
“We are focused on geographic diversification to supply new
markets,” said SABIC vice chairman and CEO Yousef Abdullah
Al-Benyan. “The proposed venture would capture competitive
feedstock, capitalize on the growing global demand for
ethylene-based products, and reinforce SABIC’s strong position in
the value chain.”
“Texas has shown the business world that our state is the place
where innovation and ingenuity thrive,” said Texas Governor Greg
Abbott. “This decision by SABIC and ExxonMobil is a tremendous win
for not just San Patricio County, but for the entire state of
Texas. This record-breaking project illustrates that our business
climate is exactly what leading and growing companies are seeking
when investing in their future.”
About ExxonMobil Chemical Company
ExxonMobil Chemical Company is one of the largest petrochemical
companies worldwide. The company holds leadership positions in some
of the largest-volume and highest-growth commodity petrochemical
products in the world. ExxonMobil Chemical Company has
manufacturing capacity in every major region of the world, serving
large and growing markets. More than 90 percent of the Company’s
chemical capacity is integrated with large refineries or natural
gas processing plants. To learn more, visit
www.exxonmobilchemical.com.
About SABIC
SABIC ranks among the world’s top petrochemical companies, and
is among the world’s market leaders in the production of
polyethylene, polypropylene, advanced thermoplastics, glycols,
methanol and fertilizers. SABIC manufactures on a global scale in
Saudi Arabia, the Americas, Europe and Asia Pacific. The company
operates in more than 50 countries across the world with 40,000
employees worldwide. To learn more, visit www.sabic.com.
CAUTIONARY STATEMENT: Statements of future events or
conditions in this release are forward-looking
statements. Actual future results, including project plans,
schedules, costs and capacities as well as economic impacts could
differ materially due to changes in market conditions affecting the
oil, gas and petrochemical industries or long-term price levels for
oil, gas, refined products and petrochemicals; political or
regulatory developments, including the granting of required permits
and any changes in environmental laws; the occurrence and duration
of economic recessions; the actions of competitors; technical or
operating factors; the outcome of commercial negotiations; and
other factors discussed under the heading "Factors Affecting Future
Results" in the Investors section of our website
(www.exxonmobil.com) and in Item 1A of our most recent Form
10-K.
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