SABIC and ExxonMobil Evaluating Petrochemical Joint Venture on U.S. Gulf Coast
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Potential new complex would be located in Texas or Louisiana near
natural gas feedstock
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Project would include a steam cracker and derivative units
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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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Copyright Business Wire 2016
Source: Business Wire
(July 25, 2016 - 8:35 AM EDT)
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