ExxonMobil (www.exxonmobil.com) and SABIC (www.sabic.com) have decided to proceed with the construction of a chemical facility and 1.8-million metric ton ethane steam cracker in Texas. The joint-venture between ExxonMobil and SABIC, called Gulf Coast Growth Ventures, received final environmental regulatory approval this month to build an ethane steam cracker, two polyethylene units and a monoethylene glycol unit. Construction will begin in the third quarter of 2019 and startup is anticipated by 2022.
The project is expected to create more than 600 permanent jobs with average annual salaries of $90,000 per year. An additional 6,000 high-paying jobs will be created during construction. A preliminary independent study, conducted by Impact DataSource, estimates the project will generate more than $22 billion in economic output during construction and $50 billion in economic benefits during the first six years of operation.
The facility will produce materials used in the manufacturing of various consumer products including automotive coolants, packaging, agricultural film and building, construction materials and clothing.
Project construction will be led by four primary engineering, procurement and construction companies: The Wood Group, McDermott & Turner Industries Group, Chiyoda & Kiewit and Mitsubishi Heavy Industries & Zachry Group.
Gulf Coast Growth Ventures is a unique opportunity created by the abundance of low cost U.S. natural gas, and is part of ExxonMobil’s Growing the Gulf initiative initiative, which outlined plans to build and expand manufacturing facilities along the U.S. Gulf Coast, creating more than 45,000 high-paying jobs across the region.
The project is part of SABIC’s growth strategy to build new petrochemical facilities in key markets, including the Americas, to address industry demand and achieve the company’s 2025 strategy.
Ownership interests in the Gulf Coast Growth Ventures project is 50% ExxonMobil and 50% SABIC, with ExxonMobil as site operator. ExxonMobil and SABIC bring expertise to this project, having worked together in petrochemical ventures for more than 35 years. The Gulf Coast Growth Ventures project expands that successful international relationship.