Exxon and SABIC Open Texas Manufacturing Facility

Exxon and SABIC Open Texas Manufacturing Facility
Construction of the facility began in the third quarter of 2019.

ExxonMobil and SABIC have announced the startup of the Gulf Coast Growth Ventures “world-scale” manufacturing facility in San Patricio County, Texas.

The new facility will produce materials used in packaging, agricultural film, construction materials, clothing, and automotive coolants, the companies noted in a joint statement. The operation includes a 1.8 million metric ton per year ethane steam cracker, two polyethylene units capable of producing up to 1.3 million metric tons per year, and a monoethylene glycol unit with a capacity of 1.1 million metric tons per year, the companies highlighted.

Construction of the facility began in the third quarter of 2019, creating an estimated 6,000 “high-paying” construction jobs, and the manufacturing plant now directly employs more than 600 people, the companies outlined.

“We built this state-of-the-art chemical plant ahead of schedule and below budget, by leveraging our global projects expertise in execution planning and delivery, while keeping everyone safe and healthy,” Karen McKee, the president of ExxonMobil Chemical Company, said in a company statement.

“This is a remarkable achievement that positions us well to help meet growing global demand for performance products while providing meaningful investment in the U.S. Gulf Coast,” McKee added in the statement.

Commenting on the development, Abdulrahman Al-Fageeh, SABIC’s executive vice president of petrochemicals, said, “this is a very proud moment for the parent companies”.

“It was with a great deal of dedication that our teams were able to safely start up each element of the plant before the close of 2021. As we begin this next chapter for GCGV, we look forward to continuing our role as a good neighbor in the Coastal Bend,” Al-Fageeh added.

ExxonMobil and SABIC highlighted that they have partnered together for 40 years on petrochemical projects. Gulf Coast Growth Ventures represents their first joint venture in the Americas, the companies revealed. Ownership interests in Gulf Coast Growth Ventures is evenly divided with 50 percent to ExxonMobil and 50 percent to SABIC.

In July last year, ExxonMobil and SABIC announced that Gulf Coast Growth Ventures had reached mechanical completion of a monoethylene glycol unit and two polyethylene units. Project startup at the time was expected to begin in the fourth quarter of 2021. In June 2019, ExxonMobil and SABIC announced a decision to proceed with the Gulf Coast Growth Ventures project.

Gulf Coast Growth Ventures’ website notes that the abundance of low cost U.S. natural gas provides a unique opportunity to build this “multi-billion dollar” facility. The site also notes that ExxonMobil and SABIC bring unmatched expertise to this project.

To contact the author, email andreas.exarheas@rigzone.com

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