Industryweek 34822 Baytown Chemical 1

ExxonMobil’s $2 Billion Baytown Chemical Plant Expansion Continues Permian Basin Growth

May 2, 2019
The expansion is part of a plan to expand manufacturing facilities along the U.S. Gulf Coast, creating more than 45,000 high-paying jobs across the region.

ExxonMobil announced on May 2 that it will proceed with a $2 billion investment to expand its Baytown, Texas chemical plant. 

ExxonMobil’s Baytown facility is the largest integrated petrochemical complex in the U.S. Founded in 1919, the complex is located on 3,400 acres, about 25 miles east of Houston. The facility includes a refinery, chemical plant, olefins plant, plastics plant and global technology center.

The expansion, which will start up in 2022 and create 2,000 jobs during construction, includes a new Vistamaxx performance polymer unit, which produces products that offer higher levels of elasticity, softness and flexibility, attributes that contribute to a reduction in materials used and increased performance in everyday products. The new unit will produce about 400,000 tons of Vistamaxx polymers a year.

The project will also enable ExxonMobil to enter 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.

The Baytown expansion is in addition to the company’s 2017 Growing the Gulf initiative, which outlined plans to build and expand manufacturing facilities along the U.S. Gulf Coast, creating more than 45,000 high-paying jobs across the region.

ExxonMobil commissioned Ernst & Young to examine the contributions the company made to the U.S. economy in 2017 – the year the Growing the Gulf initiative was launched. The research concluded that during 2017, ExxonMobil contributed more than $43 billion to the U.S. gross domestic product and direct, indirect and induced economic activity supported nearly 177,000 jobs across the country.

The Ernst & Young research also found that in 2017:

  • ExxonMobil’s U.S. operations supported nearly $6.72 billion of direct labor income – averaging $208,000 per worker in total annual compensation, including wages and benefits.
  • The impact of ExxonMobil’s operations and investments includes more than $7 billion of tax and royalty payments.
  • The company made capital investments in 20 states

“Through the billions of dollars that we’re investing in the Permian Basin to increase oil production and the expansion at our operations along the Gulf Coast, our company is making significant, lasting contributions to the U.S. economy and the many communities where we operate. "said Darren W. Woods, ExxonMobil CEO. .“Global demand for chemicals is expected to be greater than energy demand growth and GDP growth over the next 20 years.”

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