ExxonMobilto to invest $2bn for Baytown petrochemical expansion project in US
May 06, 2019 -ExxonMobil has decided to move ahead with $2bn expansion project at its Baytown petrochemical complex located along the Houston Ship Channel in Texas, US.
The Baytown expansion project involves the addition of a polymer unit and a new olefins plant that will enable the company to enter the linear alpha olefins market. The project is expected to create approximately 2,000 construction jobs.
The new Vistamaxx performance polymer unit will have capacity to produce about 400,000 tons of Vistamaxx polymers a year while the olefins plant will have an annual production capacity of around 350,000 tons of linear alpha olefins.
ExxonMobil chairman and CEO Darren Woods said: “Through the billions of dollars that we’re investing in the Permian Basin to increase oil production and the expansion at our operations along the Gulf Coast, our company is making significant, lasting contributions to the U.S. economy and the many communities where we operate.”
ExxonMobil expects the expansion project to make the most of the increased output from the Permian Basin where it is targeting an 80% increase in its production to achieve more than a million oil-equivalent barrels per day by as early as 2024.
ExxonMobil chairman and CEO Darren Woods said: “Our Baytown chemical expansion will put us in a solid position to maximize the value of increased Permian Basin production and will deliver higher-demand, higher-value products produced at our Gulf Coast refining and chemical facilities.
“Global demand for chemicals is expected to be greater than energy demand growth and GDP growth over the next 20 years.”
ExxonMobil expects the two new plants to contribute approximate 15% return on interest for the company on chemicals.
Currently, the Baytown petrochemical complex includes a refinery, chemical plant, plastics plant, olefins plant, and global technology centre.
The petrochemical facility, which was founded in 1919, is spread over nearly 3,400 acres, located about 40km east of Houston.
It is claimed to be the largest integrated petrochemical complex in the US and one of the most technologically advanced refining and petrochemical complexes in the world.