From the Field
SABIC mulls petrochemicals JV
HOUSTON, July 25, 2016 – Saudi Basic Industries Corporation (SABIC) is considering to establish a joint venture with an ExxonMobil entity that will operate a jointly owned petrochemicals plant in the US, it said in a press release on Monday.
The final investment decision on the project will be preceded by studies to determine a possible site for the plant, which would be located in Texas or Louisiana. SABIC and ExxonMobil said they would work with state and local officials in their efforts to identify a location with access to feedstock and infrastructure access.
“The proposed venture would capture competitive feedstock and reinforce SABIC’s strong position in the value chain,” vice-chairman and CEO Yousef Abdullah Al Benyan said about the plans. The proposed petrochemicals plant is to be fitted with a world-scale steam cracker and derivative units.
Neil Chapman, president of ExxonMobil Chemical Company, stressed the importance of the competitiveness of the venture. “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,” he said.
- From the field