US ExxonMobil may build cracker, PE plant in Texas

HOUSTON (ICIS)–ExxonMobil may build an ethane cracker and polyethylene (PE) plant near Corpus Christi, Texas, the company said in an application for a tax break.

If ExxonMobil proceeds with the project, it would be built in Calhoun county, which is north of Corpus Christi, the application said.

Construction could start in 2025 and finish at the end of 2030. Production could start in 2031, the application said.

ExxonMobil is considering other locations for the possible project, including the Middle East, Asia and other sites in North America.

ExxonMobil did not disclose capacity figures. The total capital investment could be $8.6 billion.

In a statement, ExxonMobil said it was evaluating multiple locations around the world for a future chemical plant. It acknowledged the advantages of a project on the Gulf Coast, which it could integrate with its operations in the Permian basin.

“While this site has potential, we are very early in our evaluation process,” ExxonMobil said. “Filing for a tax abatement before a final decision is required by law and is part of our due diligence to gain greater clarity for our shareholders and the community.

“As we look to meet global demand for our products, we’ll continue to evaluate the market conditions before we make a decision,” the company said.

ExxonMobil is involved in an existing petrochemical complex in nearby San Patricio county under the Gulf Coast Growth Ventures joint venture with SABIC. Operations started earlier in the decade, and that complex produces ethylene, PE and ethylene glycols.

Thumbnail shows PE pellets. Image by ICIS.

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(adds clarification about operations starting earlier in the decade, paragraph 9)