Exxon Mobil is delighted with a tax break worth $1.2 billion as approved by a school board in the community of South Texas. The company and its partner (Saudi Arabia Basic Industries Corp.) have welcomed this decision and have started discussion over the four sites available for their functions.
In a statement released by Exxon Mobil it was clear that the company would finalise the site within 90 days to operate their petrochemical complex. It said “Given that the tax abatement votes were slightly postponed, we can now begin final reviews with our partner SABIC, we expect to be closer to making a final site selection in the next 60 to 90 days. Until then, we will continue to evaluate the four sites under consideration.”
What do Authorities Say?
On the other hand, Don Pierson (Secretary of economic development: Louisiana) said that the agency “continues to do everything within our power to attract the highest-quality investments and best jobs for our state. For projects that remain in confidential negotiations, we respectfully reserve comment until a later date when proprietary prospect information and incentive details have been finally determined and can be made public upon announcement at the appropriate time.”
Background of the Exxon Project
Exxon and it partner from Saudi, are considering Portland’s site which lies in the north of Corpus Christi and has an area of 1,300 acres. They are aiming on building the world’s largest plant for cracking ethane steam which would be converting natural gas into the chemicals needed for plastic production. The scheduled date for plants opening is in 2024 and it will be hiring thousands of people to perform its operations.
The plant got a green signal from the school board even though it is within 2 miles from the district high school. 1,500 people stood against this plant but despite the aggression, the orders were in favour of Exxon. The taxable cap for the plant has been limited to $90 million for the first 10 years of its existence.
Robert Tully stated in an email that “”If we do choose the Gregory-Portland site as our location, I want to assure you that we will follow through with our Good Neighbour Commitments on health and safety, quality of life, education and workforce development, and being good environmental stewards.”
The tax reduction comes at a price of creating 400 jobs in the starting phase and looking for water sources other than the local ones in case a scarcity prevails. Thus, the partners are also looking at a sight in Texas and other two sites in Louisiana. They are waiting to crack the best deal possible.
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