Saudi Petrochemical Manufacturer Eyes the Gulf of Mexico
Saudi Arabia’s petrochemical manufacturer Sabic and ExxonMobil Chemical Company 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.
Sabic employs more than 40,000 people globally and has 60 manufacturing and compounding plants in over 40 countries. The company posted net income of $5 billion in 2015, production increased by one percent and sales volume by four percent compared to 2014. In October 2015, the company entered into a joint venture with SK Global Chemical for a state-of-the-art research and development facility in South Korea.