An US Exxon Mobil affiliate and Saudi Basic Industries Corporation announced they are considering constructing a jointly owned petrochemical complex on the US Gulf Coast. The development would potentially be located in Texas or Louisiana near natural gas feedstock and would include ethylene and derivative units, Reuters reported.
Before investing in the joint venture, both companies will conduct studies and work with local and state governments to pick a site with adequate infrastructure access, Gulf Business informed. For his side, Youssef Abdullah Al-Benyan, SABIC Vice Chairman and CEO, has stated that the company focuses on geographic diversification to supply new markets, adding that “the proposed venture would capture competitive feedstock and reinforce SABIC’s strong position in the value chain.
SABIC has said it was targeting North America and other markets to secure feedstock and expand its presence in key markets to fuel its growth as petrochemicals producers in Saudi Arabia are constrained by gas supplies shortages.
The Irving-based company and the Saudi-based company have worked together for 35 years in chemical joint ventures in Saudi Arabia, and their joint rubber project in Saudi Arabia started last year.