Saudi Basic Industries Corporation (SABIC) and ExxonMobil will jointly construct a petrochemical facility, including a 1.8 million metric ton ethane steam cracker in Texas, Zaywa reported.

“Building the world’s largest steam cracker, with state-of-the-art technology, on the doorstep of rapidly growing Permian production gives this project significant scale and feedstock advantages,” said Darren Woods, ExxonMobil’s CEO.

Gulf Coast Growth Venture, SABIC and ExxonMobil joint venture (JV), will benefit from ultra-cheap production from the Permian, the world’s largest shale basin to produce manufacturing materials; including automotive coolants, packaging as well as agricultural film and building, construction materials and clothing.

The project will result in establishing the world’s largest steam cracker, which will help create around $50 billion of economic output in the first six years.

“This project will not only increase global diversification for our company but will also continue to create value within our new home of San Patricio County through creating jobs and supporting economic growth.” Yousef Al-Benyan, SABIC Vice Chairman and CEO commented.

SABIC recently obtained the needed approvals, including environmental permits for the project.

The $7.3-billion project is expected to launch in H1 2022, including the ton ethylene unit that will feed a monoethylene glycol unit and two polyethylene units.

It was announced in May that SABIC and ExxonMobil have created a new JV for the development of the Gulf Coast Growth Ventures project, a 1.8 million tonne ethane cracker in San Patricio County, Texas.

The project was originally announced in 2016, however, construction works did not commence pending completion of the environmental permitting process.

For SABIC the JV deal with ExxonMobil is the first of its kind for the Saudi company abroad.

Saudi Aramco, the world’s largest oil producer, is acquiring a 70% stake in the Saudi Basic Industries Corp (SABIC) in a $69.1 billion deal that aims to develop Aramco’s downstream growth plans.