SABIC and ExxonMobil Evaluating Petrochemical Joint Venture on U.S. Gulf Coast
July 25 2016 - 08:35AM
Business Wire
- Potential new complex would be located
in Texas or Louisiana near natural gas feedstock
- Project would include a steam cracker
and derivative units
- Plans in early stages, final investment
decision to follow study completion
SABIC and an affiliate of Exxon Mobil Corporation (ExxonMobil)
(NYSE:XOM) are considering the potential development of a jointly
owned petrochemical complex on the U.S. Gulf Coast.
If developed, the project would be located in Texas or Louisiana
near natural gas feedstock and include a world-scale steam cracker
and derivative units.
Before making final investment decisions, the companies will
conduct necessary studies and work with state and local officials
to help identify a potential site with adequate infrastructure
access.
“We are focused on geographic diversification to supply new
markets,” said Yousef Abdullah Al-Benyan, SABIC vice chairman and
chief executive officer. “The proposed venture would capture
competitive feedstock and reinforce SABIC’s strong position in the
value chain.”
Neil Chapman, president of ExxonMobil Chemical Company, said:
“We have the capability to design a project with a unique set of
attributes that would make it competitive globally. That is vitally
important as most of the chemical demand growth in the next several
decades is anticipated to come from developing economies.”
ExxonMobil and SABIC have worked together for 35 years in major
chemical joint ventures in Saudi Arabia.
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
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.
CAUTIONARY STATEMENT: Statements of future events or
conditions in this release are forward-looking
statements. Actual future results, including project plans,
schedules, and outcomes and future market positioning 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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