As construction of one of Texas’ biggest petrochemical plants is underway, SABIC-Exxon Mobil’s joint venture has inked another deal with a contractor and supplier who will help to bring the $10 billion project to fruition.
Two affiliates of San Antonio-based EPIC Y-Grade Holdings will build over 130 miles- worth pipeline carrying ethylene and ethane to feed the petrochemical plant’s steam cracker, EPIC said in an Aug. 15 announcement.
One pipeline will transport ethane from the EPIC fractionator in Robstown, Texas into the project, called Gulf Coast Growth Ventures. Another pipeline will deliver ethylene into the Markham, Texas marketplace, EPIC said. Both 12-inch pipelines are expected to be complete by the third quarter of 2020.
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The transportation agreements between EPIC and Gulf Coast Growth Ventures are multiyear and are underpinned by minimum volume commitments, according to EPIC.
“We are extremely proud to be a key supplier and service provider to Gulf Coast Growth Ventures as they construct a world class ethane cracker in the lower Gulf Coast,” said Phillip Mezey, Chief Executive Officer of EPIC in a statement. ” These strategic infrastructure investments by both of our companies will continue to drive future investment in the greater Corpus Christi area.”
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Formed in 2017, EPIC builds pipeline and related projects to carry crude oil and NGLs from the Permian and Eagle Ford Basins in Texas into the Corpus Christi markets.
The announcement of EPIC’s contracts comes about two months after state regulators gave the controversial Gulf Coast Growth Ventures project final approvals to the project. Construction on the 1,300-acre project will begin in the third quarter of 2019.
The petrochemical plant will be built jointly by four primary engineering, procurement and construction companies: The Wood Group, McDermott & Turner Industries Group, Chiyoda & Kiewit and Mitsubishi Heavy Industries & Zachry Group.
Utah rail terminal operator Savage, which has Houston offices, will design, build and operate a 152-acre rail facility adjacent to the Gulf Coast Growth Ventures project to processes polyethylene pellets, one of the most common types of plastic. French industrial gas supplier and service company Air Liquide will provide oxygen and nitrogen to the project, and it is building a nearly $140 million air separation project in Bay City to support the volume expansion.
An economic impact study conducted by Impact DataSource estimated the project will generate more than $22 billion in economic output during construction and $50 billion in economic benefits during the first six years of operation, according to Exxon Mobil.
Source: FuelFix
