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Exxon and the Saudi Arabia Basic Industries Corp., known as SABIC, announced they’re weighing the venture to take advantage of cheap and abundant natural gas supplies in Texas and other parts of the country. Natural gas is used as the primary feedstock for most petrochemical plants along the Gulf Coast.

Exxon is considering sites in Victoria, Texas, as well as the Corpus Christi area, specifically San Patricio County, among other locations, Exxon spokeswoman Margaret Ross said. In Louisiana, talks continue with officials in Ascension and St. James parishes, both of which are between Baton Rouge and New Orleans.

The port access along the Gulf Coast would allow them to produce chemicals and plastics locally and ship them to developing countries in Asia and elsewhere.

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“That is vitally important as most of the chemical demand growth in the next several decades is anticipated to come from developing economies,” said Exxon Mobil Chemical President Neil Chapman in the announcement.

Exxon isn’t revealing any details except to say it would represent a multibillion-dollar investment.

SABIC is interested in geographically diversifying its global footprint, said SABIC CEO Yousef Abdullah Al-Benyan. SABIC is the largest publicly traded company in Saudia Arabia, but it’s still majority controlled by the government.

Exxon and SABIC said the project would involve building a world-class steam cracker and derivatives units. A cracker takes separated parts of natural gas, such as ethane, and uses steam to heat the hydrocarbons and break them down into petrochemicals like ethylene, which is the primary building block of most plastics.

READ MORE ABOUT THE GULF COAST PETROCHEMICAL BOOM

Before making a final decision on the project, Exxon and SABIC said they will conduct studies and work with state and local officials to help identify a potential site with adequate infrastructure access. Exxon also has existing petrochemical complexes in Baytown and Mont Belvieu outside of Houston.

Exxon and SABIC have worked together for more than 30 years on joint ven...