ExxonMobil continues to evaluate joint USGC cracker project with Sabic

03-Nov-16

ExxonMobil is continuing to evaluate construction of a 1.8 mln m tpa ethylene-capacity steam cracker on the US Gulf Coast with Saudi Arabia's Sabic, but has not yet reached a final investment decision, as per ExxonMobil sources in Platts. "I think the value proposition is there and I think we are ahead of the game in terms of making some world scale investments in this," said Jeff Woodbury, ExxonMobil vice president on investor relations, during the company's Q3 conference call.
ExxonMobil and Sabic in July announced plans for a potential joint US Gulf Coast ethane cracker, which would also include a monoethylene glycol plant and two polyethylene plants. The companies had previously said they were evaluating sites in Texas and Louisiana for the project. They have not said when a final decision would be made.

ExxonMobil projections show that demand for chemicals grows at about 1% above GDP annually, Woodbury said. This indicates another 5 million mt/year of ethylene would be need in future years, the equivalent of three-four world-scale steam crackers per year.