Article Feb. 5, 2019
Multi-billion Gulf investment to create tens of thousands of high-paying jobs
ExxonMobil is planning to invest billions to build and expand more than a dozen manufacturing projects, creating thousands of jobs and billions of dollars’ worth of economic activity.
Article Feb. 5, 2019
Advances in technology have unlocked vast new supplies of energy, fueling an exciting resurgence in American manufacturing. This abundance, particularly in natural gas, is lowering energy costs – all while helping contribute to the reduction of U.S. greenhouse gas emissions.
What does this mean for communities on the Gulf Coast?
- These projects are expected to create more than tens of thousands of jobs.
- Full-time manufacturing jobs are mostly high-skilled and high-paying and have average annual salaries ranging from $75,000 to $125,000.
- The expansion covers more than a dozen major chemical, refining, lubricant and liquefied natural gas projects along the Texas and Louisiana coasts.
- The Golden Pass Products liquefied natural gas project and most of the new chemical capacity investment in the Gulf region are geared toward external markets, which will help boost the United States’ exports.
- Smart and stable tax regulatory and trade policies are critical to ensuring that U.S. manufacturing can continue to grow.
ExxonMobil is investing more than $20 billion over 10 years to build and expand 11 manufacturing facilities, creating tens of thousands of jobs and billions of dollars’ worth of economic activity.
Built along the banks of the Neches River in 1903, the original Beaumont refining facilities have grown into an integrated petrochemical complex that today supports the energy needs of our nation and the world.
ExxonMobil has more than 2,000 area employees and its operations account for approximately one in every seven jobs in the region.
How is ExxonMobil investing in Beaumont?
- Construction of a new crude-processing unit to increase capacity by more than 65 percent, or 250,000 barrels per day. The decision to build this third crude unit within the facility’s existing footprint will expand light crude oil refining, supported by increased crude oil production in the Permian Basin. The start of construction was announced in January 2019, with startup anticipated by 2022.
- Increased production of ultra-low sulfur fuels by approximately 45,000 barrels per day using proprietary catalyst technology to remove sulfur while minimizing octane loss. The product meets EPA’s Tier 3 specifications.
- Construction of a new production unit at the polyethylene plant that will increase capacity by 65 percent to meet growing demand for high performance plastics used for liquid and food packaging, construction liners and agricultural films; startup is expected in 2019.
- Increased capacity to an existing crude unit by 20,000 barrels per day and added flexibility to process light crudes. The increase was made possible in large part by abundant, affordable supplies of U.S. light crude from shale.
One of the largest and most technologically advanced refining and petrochemical complexes in the world, ExxonMobil’s Baytown complex employs a workforce of approximately 7,000. The complex is located on approximately 3,400 acres along the Houston Ship Channel, about 25 miles east of Houston, Texas. It is comprised of four manufacturing sites and a global technology center.
How is ExxonMobil investing in Baytown?
- Construction of a new Vistamaxx™ performance polymer unit, which produces products that offer higher levels of elasticity, softness and flexibility, attributes that reduce materials used and increase performance in everyday products. The new unit will produce about 400,000 tons of Vistamaxx™ polymers a year, with startup anticipated by 2022.
- Entering the linear alpha olefins market. Linear alpha olefins are used in numerous applications, including high-performing engine and industrial oils, waxes and building blocks for surfactants, polyethylene plastic for packaging, and other specialty chemicals. The new unit will produce about 350,000 tons of linear alpha olefins a year.
- Commenced operations at its 1.5 million ton ethane steam cracker at the company’s Baytown olefins plant in 2018. The new cracker, part of ExxonMobil’s multi-billion dollar Baytown chemical expansion project, will provide ethylene feedstock to the new performance polyethylene lines in Mont Belvieu, which began production in the fall of 2017. The Mont Belvieu plant is now one of the largest polyethylene plants in the world, with manufacturing capacity of about 1.3 million tons per year. Together, these projects represent ExxonMobil’s largest chemical investment in the U.S. to date. The project is designed to meet the growing demand for high performance plastic products that deliver sustainability benefits such as lighter packaging weight, lower energy consumption and reduced emissions.
- Increasing production of advanced synthetic Group II and Group II+ EHC™ base stocks products that can help lubricant blenders achieve greater formulation flexibility, simplified global qualification testing and enhanced product integrity. These innovative products are designed to meet evolving industry requirements and incorporate ExxonMobil’s proprietary catalyst and process technologies.
ExxonMobil Baton Rouge has been essential to the economic, political and social landscape of the community. The company employs about 5,500 employees and contractors. Recent investments have led to more than 4,500 additional direct construction jobs.
How is ExxonMobil investing in Baton Rouge?
- ExxonMobil has funded the construction of a new polypropylene production unit in Baton Rouge that will expand production capacity along the Gulf Coast by up to 450,000 tons per year. Construction will begin in 2019, and startup is anticipated by 2021. The project is expected to create up to 600 jobs during construction and 65 permanent jobs once completed.
- A new 90,000 square foot state-of-the-art aviation lubricants blending, packaging and distribution facility ships products worldwide. The facility uses the latest manufacturing equipment and a range of sustainable features to increase electrical energy efficiency, including natural day-lighting panel, a comprehensive recycling program and dedicated water treatment facilities. Dedicated to the production of Mobil Jet Engine oils, the facility has dedicated lines, raw material and finished product tanks to meet the growing demand for advanced aviation engine oils.
- The sulfur expansion project increases raw material flexibility and capacity for the refinery and decreases site sulfur emissions during maintenance activities. The project uses ExxonMobil technology to meet or exceed all federal and state requirements for hydrogen sulfide and sulfur dioxide emissions.
Gulf Coast Growth Ventures
ExxonMobil and SABIC have worked together in chemical manufacturing ventures for more than 35 years. Today, the companies are proposing construction of a plastics manufacturing facility in San Patricio County, Texas, a unique opportunity created by the abundance of low-cost U.S. natural gas.
How would ExxonMobil invest in San Patricio County?
- The multi-billion dollar proposed investment is expected to create more than 600 new, permanent jobs with good salaries and benefits, as well as 3,500 indirect permanent jobs. It would also create up to 6,000 construction jobs during the five-year construction phase.
- The project would be expected to generate over $22 billion in economic output during the construction phase and more than $50 billion in economic output during the first six years of operations.
- The proposed facility would include an ethane steam cracker capable of producing 1.8 million tons per year of ethylene and three derivative units. Ethane cracking involves heating ethane until it breaks down (“cracks”) to form a mixture of ethylene and small amounts of other gases. It is then distilled further in a series of processes to create pure ethylene.
- The ethylene from the ethane steam cracker would feed three derivative units. One unit would produce monoethylene glycol, which is used in latex paints, automotive coolants and anti-freeze, or as a building block to create polyester for the manufacture of clothing and polyethylene terephthalate for beverage bottles and containers. The other two units would provide polyethylene for use in film, packaging, bottles and containers and various sized pipes.
Golden Pass Products
Golden Pass Products, a partnership of Qatar Petroleum and ExxonMobil affiliates, has begun construction of facilities to add liquefaction and export capabilities to the existing liquefied natural gas import terminal near Sabine Pass, Texas.
How is ExxonMobil investing in Golden Pass?
- The new facilities, to be built on existing Golden Pass property and utilizing the existing state-of-the-art tanks, berths and pipeline infrastructure, should be completed by 2024. The new project’s estimated send-out capacity will be about 16 million tons of LNG per year.
- The project represents an approximately $10 billion investment in infrastructure on the Gulf Coast, and should generate billions of dollars of economic growth and tax payments to local, state and federal governments. The project will also generate tens of thousands of jobs across the life of the facility, including approximately 9,000 construction jobs over five years with peak employment reaching about 3,000 jobs.