ExxonMobil reaches final investment decision for the expansion of the light crude oil refining and increased crude oil production in the Permian Basin

By Anayo Ezugwu

EXXONMOBIL Corporation has reached a final investment decision on a new unit at its Beaumont, Texas refinery. The refinery would increase crude refining capacity of the company by more than 65 percent, or 250,000 barrels per day. The third crude unit within the facility’s existing footprint will expand light crude oil refining, supported by the increased crude oil production in the Permian Basin.

Bryan Milton, president, ExxonMobil Fuels and Lubricants Company, said with access to terminals, railways, pipelines and waterways nearby, the Beaumont refinery is strategically positioned to benefit from Permian production growth. He said the addition of a third crude unit in Beaumont will enhance the refinery’s competitive position and truly establish it as a leader in the US refining industry.

Start-up of the new unit is anticipated by 2022. The project is expected to create up to 1,850 jobs during construction and between 40 and 60 permanent jobs once completed. ExxonMobil previously announced plans to build and expand manufacturing facilities in the US Gulf region as part of its growing the Gulf initiative.

The company’s plan to grow the Gulf projects include expansion of Beaumont’s polyethylene capacity by 65 percent, a new unit in Beaumont that increases production of ultra-low sulfur fuels, and a new 1.5 million ton-per-year ethane cracker at the company’s integrated Baytown chemical and refining complex in Texas. ExxonMobil and SABIC have also created a new joint venture to advance development of the Gulf Coast Growth Ventures project, a 1.8 million metric ton ethane cracker currently planned for construction in San Patricio County, Texas.

ExxonMobil’s integrated operations in Beaumont include a 366,000 barrel-per-day capacity refinery, as well as chemical, lubricants and polyethylene plants. The company has approximately 2,100 employees in the Beaumont area and its operations account for approximately 1 in every 7 jobs in the region.

In another development, ExxonMobil, with joint venture partners PetroVietnam and PetroVietnam Exploration Production Corporation, is advancing plans for a multi-billion dollar integrated gas-for-power development in central Vietnam. The company has awarded the contract for front-end engineering and design, and is filing appropriate permits, planning applications and other preparatory work for the proposed development.

If approved, ExxonMobil will lead the construction and operation of the project, which will produce and treat natural gas from the Ca Voi Xanh field, located offshore in block 118. The proposed project consists of an offshore platform, a pipeline to transport the gas to shore, an onshore gas treatment plant and pipelines that feed gas to third-party power plants to generate electricity locally. Liam Mallon, president, ExxonMobil Development Company, said the Ca Voi Xanh project could bring a number of long-term benefits to the country, including cleaner, reliable power to help drive economic growth and improved living standards.

“If the project goes forward, it is estimated to generate $20 billion in revenue to the Vietnamese government, thousands of local jobs and improved energy security from domestic gas development,” he said.

Vietnam Electricity, PetroVietnam and Sembcorp are in discussions to build and operate the power plants. The proposed base development is expected to generate three gigawatts of power, equivalent to about 10 percent of Vietnam’s current total power demand. A final investment decision, targeted in 2020, will be based on a number of factors, including regulatory approvals, government guarantees, executed gas sales agreements and economic competitiveness.

– Feb. 1, 2019 @ 15:49 GMT |