The battle between Louisiana and Texas for ExxonMobil Chemical Co. and Saudi Basic Industries Corp.'s "world-scale" petrochemical complex is over, and Texas won.
The partners selected a site in San Patricio County, Texas, for the proposed petrochemical plant, which will provide the building blocks for polyester, anti-freeze, plastic bottles and food packaging.
Earlier this year, ExxonMobil officials said Ascension and St. James parishes were in the running for the petrochemical complex, though company officials also said a Portland, Texas, site was the front-runner and that another Texas site also was under consideration.
The proposed multibillion-dollar investment would include an ethane steam cracker capable of producing nearly 2 million tons of ethylene a year. If built, the project would create 600 full-time jobs, 3,500 indirect jobs and support thousands more jobs during the construction phase. It also is expected to generate more than $22 billion in economic output during the construction phase and more than $50 billion in economic output during the first six years of operations.
The plant will be built in Portland, just north of Corpus Christi, on roughly 1,300 acres. Exxon officials have said it'll be among the largest ethane steam cracker plants in the world.
Texas Gov. Greg Abbott on Wednesday formally announced the venture.
The plant, set to open in 2024, will produce components used to make plastic bottles and other items.
The project will receive state and local tax incentives, including a $1.2 billion package approved last month by the Gregory-Portland school district board. Abbott says more than $6 million was offered in state incentives.
SABIC is based in Saudi Arabia and ranks among the world’s top petrochemical companies and producer of polyethylene, polypropylene, advanced thermoplastics, glycols, methanol and fertilizers. The company operates in more than 50 countries across the world with 40,000 employees. SABIC Petrochemical Holdings U.S. owns an 11.5 percent interest in Canada-based NOVA Chemicals' olefins plant in Geismar, which can produce 1.95 million tons of ethylene a year.