SABIC and ExxonMobil Enters into Joint Venture for Petrochemical Project on US Gulf Coast

United States: SABIC, a Saudi based manufacturer active in chemicals, industrial polymers, fertilizers and metals, has signed an agreement with US based ExxonMobil to develop potential petrochemical complex which comprises an ethylene production unit, with focus on supplying feedstock to downstream ethylene derivatives facilities of the complex. Under the terms of the agreement, the two companies would work in parallel to arrive at final investment decision for developing the petrochemical complex, which would help SABIC to strengthen its operations and positions in global market. The project is expected to be based in either Louisiana or Texas. It is anticipated that SABIC will not be looking forward to expand production in Saudi Arabia due to the shortage of ethane feedstock in there. Also, the company is evaluating coal –to-chemicals and shale gas opportunities in North America and China. Recently, SABIC in agreement with Shenhua Ningxia Coal Industry Group (SNCG), a subsidiary of Shenhua Group having abundant coal reserves, is studying the petrochemical project in China. Lately, it has been announced that SNCG will be supplying coal as raw material to SABIC for development of its potential petrochemical project.

TechSci Research depicts that the partnership between SABIC and ExxonMobil would lead to the development of technologically advanced petrochemical complex, which would prove extremely beneficial for SABIC to strengthen its position across the globe. Furthermore, this venture between ExxonMobil-SABIC along the Gulf Coast would necessitate increased requirement for masterbatch for various applications, including packaging as well as building and construction across the globe.

According to recently published TechSci Research report, “Global Masterbatch Market By Type, By End User, By Region, Competition Forecast and Opportunities, 2011 – 2021”, global masterbatch market size is estimated to cross $ 16 billion in 2016. Growth in the market is anticipated on account of continuously increasing demand from major end use industries, such as packaging, food processing, building & construction, and automotive industries. Moreover, masterbatch consumption in packaging has increased significantly across the globe over the last five years due to rising popularity of small pack sizes, expanding sales and distribution network of plastic processors and plastic products, as well as growing use of flexible packaging market.