- ExxonMobil announced that it is ready to begin construction with partner SABIC on a $ 10 billion ethane cracker facility near Corpus Christi, Texas.
The Gulf Coast Ventures project received its final environmental permit this month to build an ethane steam cracker, two polyethylene units and a monoethylene glycol unit. Construction is expected to start in the third quarter of this year. Completion is planned for 2022. The engineering, procurement and construction companies selected are The Wood Group; McDermott & Turner Industries Group; Chiyoda & Kiewit; and Mitsubishi Heavy Industries & Zachry Group.
ExxonMobil said the construction phase of the project will create 6,000 construction jobs and generate $ 22 billion in economic activity.
ExxonMobil said the project will create 600 permanent jobs and $ 50 billion in economic output over the first six years of operation.
An ethane cracker plant extracts the ethane found in natural gas and processes it into ethylene, a chemical used in the manufacture of polyethylene plastic and monoethylene glycol, which are used to make products such as antifreeze. ExxonMobil said the chemicals produced at the new facility will be used in the manufacture of automotive coolants, construction, building materials and apparel.
The energy and petrochemical industries have long had a strong presence in the US Gulf Coast region, largely due to the region’s location, which makes it a major export hub for liquefied natural gas (LNG) and other products.
ExxonMobil has also partnered with Qatar Petroleum to build a $ 10 billion LNG export facility in Sabine Pass, Texas. Construction of the Golden Pass project should have started in late March. This project is also expected to create thousands of construction jobs – 9,000 according to the latest estimate – and generate tens of billions of dollars in the US economy.
McDermott International announced that it has received a “mega-contract” – defined by the company as a $ 1 billion contract – to build the project and that it will work with joint venture partners Chiyoda International Corp. and Zachry Group will perform.
ExxonMobil plans to spend $ 20 billion over the next 10 years to expand its Texas and Louisiana operations, including expanding its Baytown, Texas chemical plant by $ 2 billion. This Grow the Gulf plan is part of the company’s larger $ 50 billion investment it plans to invest in its U.S. operations over the next five years. .