ExxonMobil to expand Ultra-Low Sulfur Diesel Production at Fawley Refinery

Fri, Apr 26, 2019 | By publisher


Oil & Gas

ExxonMobil’s expansion of Fawley refinery in United Kingdom will increase production of ultra-low sulfur diesel by almost 45 percent

 

 

EXXONMOBIL has made a final investment decision to expand the Fawley refinery in the United Kingdom. The decision will see the company increase production of ultra-low sulfur diesel by almost 45 percent, or 38,000 barrels per day, along with logistics improvements.

Bryan Milton, president, ExxonMobil Fuels and Lubricants Company, said the company will continue to invest in the Fawley refinery and chemical plant, Britain’s largest integrated facility. He said this investment will make Fawley refinery the most efficient in the United Kingdom, supporting Esso’s industry-leading logistics and fuels marketing operations.

The investment will help reduce the need to import diesel into the United Kingdom, which imported about half of its supply in 2017. The more than $1 billion investment includes a hydrotreater unit to remove sulfur from fuel, supported by hydrogen plant, which combined will also help improve the refinery’s overall energy efficiency. Ultra-low sulfur fuels lead to improved air quality when powering the latest technology engines on tractor-trailers, buses, marine vessels and off-road equipment.

Detailed engineering and design is underway. Construction is scheduled to begin in late 2019, subject to regulatory approval, and start-up is expected in 2021. At its peak, building activity will support up to 1,000 construction jobs. Located on Southampton Water, the Fawley site also has strategic access to distribution logistics across southern England and export access to other markets in Europe and the Atlantic basin.

Alongside recent investments at ExxonMobil’s refineries on the U.S. Gulf Coast, Rotterdam, Antwerp, and Singapore, the project will contribute to ExxonMobil’s announced plans to significantly increase the earnings potential of its downstream business by 2025.

Meanwhile, ExxonMobil is ready to increase its exploration acreage in Namibia with the addition of approximately seven million net acres (28,000 square kilometers) following the signing of an agreement with the government of Namibia and the National Petroleum Corporation of Namibia, NAMCOR, for blocks 1710 and 1810, and farm-in agreements with NAMCOR for blocks 1711 and 1811A.

The blocks extend from the shoreline to about 135 miles (215 kilometers) offshore Namibia in water depths up to 13,000 feet (4,000 meters). ExxonMobil plans to begin exploration activities in 2019, including acquisition of seismic data and analysis.

Mike Cousins, senior vice president of exploration and new ventures at ExxonMobil, said these agreements provide ExxonMobil with an opportunity to explore for hydrocarbons using advanced technology in the frontier Namibe basin. “We will employ our significant upstream experience and technological expertise and work in close collaboration with NAMCOR in exploring these blocks,” he said.

ExxonMobil will operate blocks 1710 and 1810 and hold a 90 percent interest; NAMCOR will hold a 10 percent interest. ExxonMobil will assign 5 percent of its interest to a local Namibian company. ExxonMobil will be operator of blocks 1711 and 1811A, and will hold an 85 percent interest. NAMCOR will retain a 15 percent interest.

The company also holds a 40 percent interest in the PEL 82 license offshore Namibia, comprising about 2.8 million gross acres (11,500 square kilometers).

 

– Apr. 26, 2019 @ 18:49 GMT |

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