ExxonMobil is considering a multibillion-dollar petrochemical project in China as it builds up its global capacity to meet rising demand in Asia and elsewhere.

The oil, gas and petrochemicals giant has signed a cooperation framework agreement with the Guangdong provincial government to advance discussions on a proposed complex in the Huizhou Dayawan Petrochemical Industrial Park.

The project would center on a 1.2 million t/y ethylene flexible feed steam cracker, supplying two performance PE and two differentiated performance PP lines. Start-up is planned for 2023. ExxonMobil said its decision to proceed will be based on several factors, including receipt of permits as well as the project’s competitiveness.

The company added that it also intends to participate in developing the Huizhou liquefied natural gas (LNG) receiving terminal that the Guangdong government is supporting.

ExxonMobil anticipates increasing chemicals production in Asia-Pacific and North America by about 40%, which will be partly achieved by adding 13 new facilities, including two steam crackers in the US that are part of the company’s Growing the Gulf initiative.

In May, the company announced a joint venture with SABIC to build a 1.8 million t/y ethane cracker in San Patricio Country, Texas, USA, which will feed units producing monoethylene glycol and PE.

Its new 1.5 million t/y new ethane cracker at Baytown, Texas, also part of the Growing the Gulf initiative, started operations in July. The cracker is providing ethylene feedstock to new PE lines at ExxonMobil’s Mont Belvieu complex, which began production in autumn 2017.