ExxonMobil Signs Framework Agreement for Proposed Chemical Complex in China
September 05 2018 - 9:00PM
Business Wire
- Company is evaluating a
multibillion-dollar investment in Guangdong Province
- Project would help meet expected
chemical demand growth in China
- Part of company’s plans to grow
manufacturing capacity in the U.S. and Asia Pacific
ExxonMobil said today that it has signed a cooperation framework
agreement with the Guangdong Provincial People’s Government to
advance discussions concerning the proposed construction of a
chemical complex in the Huizhou Dayawan Petrochemical Industrial
Park. The new facility would help meet expected demand growth for
chemical products in China.
The multibillion-dollar project, which remains subject to a
final investment decision, would include a 1.2
million-tons-per-year ethylene flexible feed steam cracker, two
performance polyethylene lines and two differentiated performance
polypropylene lines. ExxonMobil’s decision to proceed with the
project will be based on a number of factors, including receipt of
permits and project competitiveness. Startup is planned for
2023.
“Our agreement with the Guangdong Provincial Government
demonstrates ExxonMobil’s interest in advancing this project from
concept to completion,” said John Verity, president of the
ExxonMobil Chemical Company. “We value the government’s support and
its experience in moving such a large-scale project forward.”
The new complex would rely on advanced proprietary technologies
in direct crude steam cracking and performance polymers
manufacturing. It would support progress toward China’s national
petrochemical development priorities, which include
self-sufficiency, diversified feedstock sources, rebalancing fuels
versus chemicals and advancing new competitive technology. The
framework agreement also confirms Guangdong Province’s support in
progressing the Huizhou LNG receiving terminal, in which ExxonMobil
intends to participate, including supply of LNG.
The company is also evaluating other chemicals manufacturing
projects in Asia to help meet expected demand growth in the region.
ExxonMobil expects to grow chemicals manufacturing capacity in Asia
Pacific and North America by about 40 percent. That growth will be
achieved in part by adding 13 new facilities, including two
world-class steam crackers in the United States that are part of
the company’s Growing the Gulf initiative. These investments would
enable the company to meet increasing demand in Asia and other
growing markets.
The company recently commenced operations at its 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 tonne ethane cracker
currently planned for construction in San Patricio County, Texas.
The facility will also include a monoethylene glycol unit and two
polyethylene units.
ExxonMobil’s downstream and chemical businesses both have a
presence in China, and the company operates primarily through its
Shanghai-based ExxonMobil (China) Investment Co. Ltd. affiliate.
The company is also a joint venture partner with Sinopec, Fujian
Province and Saudi Aramco in China’s first integrated refining and
petrochemical facility to include international participation.
ExxonMobil is committed to social investment where it operates
and supports programs that focus on the environment, health and
education.
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 demand growth; project plans, schedules,
capacities, and costs; 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; political or
regulatory developments, including the granting of required permits
and any changes in environmental laws; the outcome of commercial
negotiations; timing of funding decisions and project construction;
the occurrence and duration of economic recessions; the actions of
competitors; unforeseen technical or operating difficulties; and
other factors discussed under the heading "Factors Affecting Future
Results" in the Investors section of our website
(www.exxonmobil.com) and in Item 1A of our most recent Form
10-K.
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