Exxonmobil Increases Production In Baytown, Texas
Market Expertz | May 15, 2019
ExxonMobil Corp. is undertaking a $2 billion expansion project in Baytown, Texas, which will involve substantial capacity expansions for elastomers and specialty olefins. The investment is expected to create 2,000 construction jobs and will also optimize the increased production from the Permian shale oil basin. The capacity expansion of the Baytown facility marks its 100the anniversary this year will also add a new unit with the annual capacity of nearly 900 million pounds of Vistamaxx-brand polyolefin elastomers.
The production at the 3,400-acre Baytown site is scheduled to begin expansion in the year 2022. The expansion project will also facilitate ExxonMobil’s entrance in the linear alpha olefins specialty materials sector. The new unit will have an annual capacity of almost 800 million pounds of LAO materials, which are widely used in high-yielding engine and industrial oils, polyethylene for the packaging market, and waxes and building blocks for surfactants. The Baytown expansion will add to the company’s 2017 Growing the Gulf initiative, which includes plans to establish and expand manufacturing facilities along the U.S. Gulf Coast to create over 45,000 high-paying jobs in the region. Darren Woods, Chairman and CEO, has said that the significant investments in the United States will supplement the company’s long-term growth plans and will result in the creation of many more high-paying jobs. Woods also said that the company’s recent investments like the expansion of oil and gas production in the Permian Basin and the one at Baytown would also prove to be beneficial for the national economy.
Woods further commented that the global demand for chemicals would be higher than energy demand growth and GDP growth in the next 20 years. Since the year 2017, ExxonMobil has added over 3 billion pounds of yearly polyethylene production capacity, most of which was at the new unit in Mont Belvieu, Texas.