SABIC, ExxonMobil $7.3bn US cracker JV to start construction in Q2

02 May 2018 07:06 Source:ICIS News

SINGAPORE (ICIS)--Saudi Arabia’s petrochemical major SABIC expects construction of its planned US joint venture cracker project with energy firm ExxonMobil to begin during the second quarter.

The cost of the project in San Patricio County, Texas, is estimated at about $7.3bn; with engineering, procurement and construction (EPC) contracts signed with Chiyoda Kiewit Joint Venture and CTCI McDermott, SABIC said in a filing to the Saudi Stock Exchange or Tadawul on 1 May.

Construction of the 50:50 joint venture project is still subject to regulatory approvals.

“It is expected to start the initial engineering and construction during the second quarter of this year and expected to be completed during the fourth quarter of the year 2021,” SABIC said.

The project – which will have an ethylene capacity of 1.8m tonnes/year and will include a monoethylene glycol (MEG) unit and two polyethylene (PE) plants – “is expected to start up during the first half of 2022”, the company said.

“The project reflects SABIC strategy to focus on geographical diversification to reach new global markets and enable the company to access competitive feedstock,” the Saudi petrochemical giant said.

In a separate announcement on 1 May, ExxonMobil said a joint venture was created to pursue the project called Gulf Coast Growth Ventures. This is the company’s third tie-up with SABIC in Saudi Arabia.

The project “is expected to create 600 new, permanent jobs, about 3,500 indirect and induced jobs during operations, as well as 6,000 construction jobs during the peak of construction”, ExxonMobil said.

Top image: SABIC Technology Center, Sugarland, TX, USA

By Pearl Bantillo