ExxonMobil expands manufacturing capacity in the US; JV petrochem plant with Sabic underway in Texas

Irving, Texas-headquartered ExxonMobil is expanding manufacturing capacity in the US Gulf Region through planned investments of US$20 billion over a 10-year period, according to its latest press statement.

The projects at 11 proposed and existing sites, are expected to generate over 45,000 jobs and further increased economic activity in Texas and Louisiana.

The expansion is to take advantage of the American energy revolution, according to ExxonMobil’s Chairman and CEO, Darren Woods.

ExxonMobil is strategically investing in new refining and chemical-manufacturing projects in the US Gulf Coast region to expand its manufacturing and export capacity. The company’s Growing the Gulf expansion programme, consists of 11 major chemical, refining, lubricant and liquefied natural gas (LNG) projects at proposed new and existing facilities along the Texas and Louisiana coasts. Investments began in 2013 and are expected to continue through at least 2022.

Woods said that ExxonMobil’s Gulf expansion projects are expected to provide long-term economic benefits to the region, noting the creation of direct employment opportunities and the multiplier effects of the company’s investments. Most of the company’s planned new chemical capacity investment in the Gulf region is targeted toward export markets in Asia and elsewhere.

“These projects are export machines, generating products that high-growth nations need to support larger populations with higher standards of living,” Woods said. “Those overseas markets are the motivation behind our investments. The supply is here; the demand is there. We want to keep connecting those dots.”

Meanwhile, the joint plans of petrochemical giants Exxon Mobil and Riyadh, Saudi Arabia-headquartered Saudi Basic Industries (Sabic) to build a huge petrochemical plant may well be underway inGregory and Portland, Texas; and is expected to be completed by 2024, according to reports.

The partners have been eyeing several sites for said US$10 billion-facility, including sites in Louisiana, Victoria, and Texas areas. However, a Corpus Christi site is a strong contender, having approved some US$1.2 billion tax breaks for said project.

The plant, which will span 1,300 acres, is expected to generate up to 1.8 million metric tonnes of ethylene/year and thousands of jobs, the companies said.