Sector News

ExxonMobil, Sabic receive approvals for $10 billion petrochemical project in the US

June 13, 2019
Energy & Chemical Value Chain

ExxonMobil and Sabic are to proceed with their multi-billion dollar petrochemical production joint venture (JV) on the US Gulf Coast. Sabic said in a regulatory filing today that the JV has obtained all the required regulatory approvals, including environmental permits, for the project. Construction is expected to start later this year with completion planned for the first half of 2022. The project will include one of the world’s largest ethane crackers, designed to produce 1.8 million metric tons/year of ethylene, two polyethylene units and an ethylene glycol plant.

On Wednesday, the Texas Commission on Environmental Quality granted air quality permits to Gulf Coast Growth Ventures, the equally-owned JV between the two partners. The complex will be built north of Corpus Christi between the towns of Gregory and Portland. The engineering, procurement and construction contracts for the project were awarded earlier to Chiyoda Kiewit JV and CTCI-McDermott.

ExxonMobil and Sabic are already partners is several JVs in Saudi Arabia, which include a major elastomers manufacturing alliance. The Corpus Christi JV will be Sabic’s first major petchems production venture in the US and is part of the company’s geographic diversification to supply new markets. “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,” Sabic’s CEO Yousef al-Benyan said earlier.

Sabic is in the process of being acquired by Saudi Aramco. The latter has its own major investment plans in the US via its wholly-owned subsidiary, Motiva Enterprises at Port Arthur, Texas.

By Natasha Alperowicz

Source: Chemical Week

comments closed

Related News

July 14, 2024

Europe ethylene spot prices turn firmer on demand, feedstock, looming cracker turnarounds

Energy & Chemical Value Chain

European ethylene spot prices have firmed week on week on the back of better-than-expected demand amid higher feedstock values and an increasing focus on upcoming planned cracker maintenance outages. Spot deals this week have been reported at discounts of 32-35% on the pipeline, prior deals had been at discounts of around 38-39%.

July 14, 2024

Marcel Imwinkelried appointed new Siegfried CEO

Energy & Chemical Value Chain

He will succeed Reto Suter, who has led the Siegfried Group as CEO ad interim since the departure of Wolfgang Wienand on May 1, 2024. Suter will now focus on his role as Chief Financial Officer for Siegfried. Wienand will become CEO of Swiss competitor Lonza.

July 14, 2024

Honeywell acquires Air Products’ LNG technology, business for $1.8B

Energy & Chemical Value Chain

Honeywell Inc. (Charlotte, North Carolina) has reached agreement to acquire Air Products’ (Leigh Valley, Pennsylvania) liquefied natural gas process technology and equipment business for $1.81 billion. The deal is expected to close before the end of the year. The price represents a multiple of 13 times the unit’s estimated 2024 EBITDA.

How can we help you?

We're easy to reach