MOSCOW (MRC) -- ExxonMobil has announced its plans to add a new production unit at its Beaumont polyethylene (PE) plant that will increase capacity by 65% or approximately 650,000 tonnes per year to meet growing demand for high performance plastics, reported Hydrocarbonprocessing.
Construction of the new unit has begun at the plant, where current PE production capacity is 1 million tonnes per year. Startup is expected in 2019.
"The availability of vast new supplies of U.S. shale gas and associated liquids for feedstock and energy is a significant advantage that enables expansion to meet strong global demand growth in polyethylene," said Cindy Shulman, vice president of ExxonMobil’s plastics and resins business.
The Beaumont project builds on supply advantages created by ExxonMobil’s expansion of its Mont Belvieu Plastics Plant in Texas, where two similar PE units are being added. Combined, this multi-billion dollar investment will increase the company’s U.S. polyethylene production by 40%, or nearly 2 million tonnes per year, making Texas the largest PE supply point for ExxonMobil.
The Beaumont expansion project will employ 1,400 construction workers and create 40 permanent jobs upon completion, as well as generate USD20 billion in economic activity in the first 13 years of operation based on 2015 Impact Data Source estimates.
"We’re part of the growth in an area that is primed for new business," said Jason Duncan, manager of the Beaumont polyethylene plant. "The expansion of the polyethylene plant is now ExxonMobil’s third significant investment in the Beaumont area over the past 18 months, the impact of which will benefit the local economy in the years to come."
ExxonMobil’s previously announced investments at Beaumont include expansion of the refinery’s crude refining capacity in 2015 and, earlier this year, construction of a new unit to increase domestic supply of ultra-low sulfur gasoline and diesel.
As MRC informed earlier, in February 2016, ExxonMobil Chemical completed the start up process of its 820,000 m tpa ethylene complex in Beaumont, Texas. The Beaumont complex has two equal-sized steam cracking units with total combined ethylene capacity of 820,000 mtpa.
ExxonMobil is the largest non-government owned company in the energy industry and produces about 3% of the world's oil and about 2% of the world's energy.
MRC