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June 20, 2014

ExxonMobil Chemical Co. begins multi-billion dollar expansion project in Baytown

Gerald Ondrey

ExxonMobil Chemical Co. (Houston; www.exxonmobile.com) says that it has started construction of a multi-billion dollar ethane cracker at its Baytown, Tex., complex and associated premium product facilities in nearby Mont Belvieu. This project, and major investments ExxonMobil has made to develop oil and natural-gas resources in the U.S., including the merger with XTO Energy, demonstrates the company’s continuing commitment to American economic growth and job creation.

The steam cracker will have a capacity of up to 1.5 million ton/yr and provide ethylene feedstock for downstream chemical processing, including processing at two new 650,000-ton/yr, high-performance polyethylene (PE) lines at the company’s Mont Belvieu plastics plant.

“The project is made possible in large part by abundant, affordable supplies of U.S. natural gas for energy and chemical feedstock,” says Steve Pryor, president of ExxonMobil Chemical Co. The chemical industry and other industrial sectors account for nearly 30% of U.S. natural gas demand. “Shale development has provided U.S. chemical producers a double benefit as an energy source and as a key raw material to make plastics and other essential products, creating jobs and economic activity across the value chain.”

The project will employ about 10,000 construction workers, create 4,000 related jobs in nearby Houston communities and add 350 permanent positions at the Baytown complex. It is expected to increase regional economic activity by roughly $870 million per year and generate more than $90 million per year in additional tax revenues for local communities.

Contracts have been awarded for construction, which will begin immediately. Contracts have been awarded to Linde Engineering North America, Inc. and Bechtel Oil, Gas, and Chemicals, Inc. to build olefins recovery units at the ExxonMobil Baytown Olefins Plant. Mitsui Engineering & Shipbuilding Co, Ltd. and Huertey Petrochem S.A. will construct the new olefins furnaces. At the Mont Belvieu Plastics Plant, Mitsubishi Heavy Industries will construct two 650,000 ton/yr high-performance PE lines. Jacobs Engineering, Ltd. will oversee enabling works and interconnections at both locations. Dashiell Corp. and Wood Group Mustang will provide specialty contracting services.

 

 

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