Commissioning Underway for ExxonMobil’s Ethane Cracker in Baytown, Texas
February 06 2018 - 9:00AM
Business Wire
- Will increase ethylene capacity by 1.5
million tons per year
- Production expected to begin during the
second quarter of 2018
- Will provide feedstock for new
polyethylene lines at the company’s Mont Belvieu plastics
plant
ExxonMobil announced today that a new 1.5 million ton-per-year
ethane cracker at its Baytown, Texas complex is mechanically
complete with commissioning progressing well. Project startup is
expected during the second quarter of 2018.
The new ethane cracker, part of ExxonMobil’s multi-billion
dollar Baytown chemical expansion project, will provide ethylene
feedstock to the new performance polyethylene lines in Mont
Belvieu, which began production in the fall of 2017.
“With the completion of the project in Baytown, we are on the
verge of fully realizing one of ExxonMobil’s most significant U.S.
Gulf Coast investments,” said John Verity, president of ExxonMobil
Chemical Company. “Our new ethane cracker will allow us to
economically meet rapidly growing demand for high-performance
polyethylene products around the world while continuing to sustain
economic development and create jobs for decades to come.”
The project has created more than 10,000 construction jobs and
4,000 related jobs in nearby Houston communities since construction
began in 2014. Once operational, it is expected to support 350 new
permanent positions at the Baytown complex, $870 million a year in
regional economic activity and $90 million per year in local tax
revenues.
The Baytown chemical expansion project is a key component of
ExxonMobil’s previously announced Growing the Gulf initiative. In
addition to the ethane cracker in Baytown, ExxonMobil and SABIC are
proposing to build a jointly owned petrochemical complex in San
Patricio County, Texas, that would include a 1.8 million
ton-per-year ethane cracker – the largest capacity of any ethane
cracker built to date.
Massive new supplies of oil and natural gas have dramatically
reduced energy costs and created new sources of feedstock for U.S.
refining and chemical manufacturing. Most of ExxonMobil’s planned
new chemical capacity investment in the Gulf region is focused on
supplying export markets such as Asia with high-demand products,
which will contribute to strengthening the United States’ balance
of trade. Recent changes in the U.S. corporate tax rate also create
an environment for increased future capital investments in projects
such as these, and will further enhance the company’s
competitiveness in global markets.
“The U.S. chemical industry is rapidly expanding along the Gulf
Coast due to abundant supplies of domestically produced natural
gas, as demonstrated by the investments ExxonMobil alone is
making,” Verity said. “This expansion will not only increase the
nation’s existing manufacturing and export capacity, but also
further stimulate economic growth and create thousands of full-time
jobs.”
To support the industry’s need for skilled workers as part of
this growth, ExxonMobil has contributed $2 million over the last
five years to the Community College Petrochemical Initiative, a
training program offered by nine Houston-area community colleges to
provide technical skills to high school graduates, returning
military veterans and others.
About ExxonMobil
ExxonMobil, the largest publicly traded international oil and
gas company, uses technology and innovation to help meet the
world’s growing energy needs. ExxonMobil holds an industry-leading
inventory of resources, is one of the largest refiners and
marketers of petroleum products, and its chemical company is one of
the largest in the world. For more information, visit
www.exxonmobil.com or follow us on Twitter
www.twitter.com/exxonmobil.
Cautionary Statement: Statements of
future events or conditions in this release are forward-looking
statements. Actual future results, including project plans,
schedules, and capacities and efficiency and business results,
could differ materially due to factors such as changes in prices of
oil, gas, or petrochemicals and other market factors affecting the
petrochemical industry and the supply and demand for our products;
the occurrence and duration of economic recessions; timely
completion of construction projects and unforeseen technical or
operating difficulties; legal or regulatory events; the actions of
competitors; and other factors discussed under the heading Factors
Affecting Future Results on the Investors page of our website at
exxonmobil.com.
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