Exxon cracker is canceled

The Jose project, a proposed 1 million-metric-ton-per-year ethylene/polyethylene joint venture between Venezuelan state oil company PDVSA and ExxonMobil, has been scrapped. ExxonMobil says it was notified by Pequiven, PDVSA's chemical arm, that it couldn't proceed with the project under terms agreed to in August 2004. ExxonMobil adds that the parties completed the engineering and marketing parts of the study but were still defining feedstock contracts, financing, and other commercial aspects. Pequiven has reportedly said it will still pursue the project, perhaps with partners from Brazil, Japan, Saudi Arabia, or Iran.