ExxonMobil Boosts Fuel Supply with $2 Billion Beaumont Refinery Expansion

Rhea-AI Summary

ExxonMobil has successfully completed the expansion of its Beaumont refinery, marking the largest U.S. refinery expansion since 2012. The $2 billion project boosts production capacity by 250,000 barrels per day, bringing total refinery capacity to over 630,000 barrels per day. This expansion, timed to meet increasing post-pandemic energy demands, was executed on schedule and within budget, employing more than 1,700 contractors. ExxonMobil's integrated operations in Beaumont notably enhance their strategic edge in processing Permian Basin crude oil, ensuring a robust supply of essential fuels.

Positive

• Expansion increases Beaumont refinery capacity by 250,000 barrels per day.
• Project executed on time and under budget.
• Supports growing demand for transportation fuels in a post-pandemic market.
• Integrated operations provide strategic advantages in crude processing.

Negative

• None.

• Largest refinery expansion in U.S. since 2012, equivalent to adding a medium-sized refinery
• $2 billion project increases capacity for transportation fuels by 250,000 barrels per day
• Well executed from design to startup, global project comes online on time and on budget

IRVING, Texas--(BUSINESS WIRE)-- ExxonMobil today announced the successful startup of its Beaumont refinery expansion project, which adds 250,000 barrels per day of capacity to one of the largest refining and petrochemical complexes along the U.S. Gulf Coast. Supported by the company’s growing crude production in the Permian Basin, the largest refinery expansion in more than a decade will help meet growing demand for affordable, reliable energy.

ExxonMobil’s Beaumont refinery expansion will increase capacity for transportation fuels by 250,000 barrels per day at its Beaumont facility. The added volume in Beaumont brings total processing capacity to more than 630,000 barrels per day, making it one of the largest refineries in the United States. (Photo: Business Wire)

“ExxonMobil maintained its commitment to the Beaumont expansion even through the lows of the pandemic, knowing consumer demand would return and new capacity would be critical in the post-pandemic economic recovery,” said Karen McKee, president of ExxonMobil Product Solutions. “The new crude unit enables us to produce even more transportation fuels at a time when demand is surging. This expansion is the equivalent of a medium-sized refinery and is a key part of our plans to provide society with reliable, affordable energy products.”

The added volume in Beaumont increases its total processing capacity to more than 630,000 barrels per day, making it one of the largest refineries in the United States.

The refinery is connected to pipelines from ExxonMobil’s operations in the U.S. Permian Basin, providing the company with significant strategic advantages. Permian crude oil is processed at the Beaumont refinery where the company manufactures finished products, including diesel, gasoline, and jet fuel. With the completion of Wink to Webster and Beaumont pipelines, the new crude unit will also be well-positioned to further capitalize on segregated crude from the Delaware Basin.

In 2022, ExxonMobil reached record production at its North American refineries and achieved its highest global throughput since 2012. The company’s commitment and capability to meet society’s energy needs includes its willingness to invest, even counter cyclically.

Construction on the Beaumont expansion began in 2019 and involved 1,700 contractors. ExxonMobil has hired more than 50 full-time employees to help with the operation of the expanded refinery. The company’s extensive project management experience enabled the new crude and hydrotreater units to startup according to planned cost and schedule.

ExxonMobil’s integrated operations in Beaumont also include chemical, lubricants and polyethylene plants. ExxonMobil has approximately 2,100 employees in the Beaumont area and its operations account for approximately 1 in every 7 jobs in the region.

###

About ExxonMobil

ExxonMobil, one of the largest publicly traded international energy and petrochemical companies, creates solutions that improve quality of life and meet society’s evolving needs.

The corporation’s primary businesses - Upstream, Product Solutions and Low Carbon Solutions - provide products that enable modern life, including energy, chemicals, lubricants, and lower emissions technologies. ExxonMobil holds an industry-leading portfolio of resources, and is one of the largest integrated fuels, lubricants and chemical companies in the world.

In 2021, ExxonMobil announced Scope 1 and 2 greenhouse gas emission-reduction plans for 2030 for operated assets, compared to 2016 levels. The plans are to achieve a 20-30% reduction in corporate-wide greenhouse gas intensity; a 40-50% reduction in greenhouse gas intensity of upstream operations; a 70-80% reduction in corporate-wide methane intensity; and a 60-70% reduction in corporate-wide flaring intensity.

With advancements in technology and the support of clear and consistent government policies, ExxonMobil aims to achieve net-zero Scope 1 and 2 greenhouse gas emissions from its operated assets by 2050. To learn more, visit exxonmobil.com, the Energy Factor, and ExxonMobil’s Advancing Climate Solutions.

Follow us on Twitter and LinkedIn.

Cautionary Statement

Statements related to outlooks; projections; descriptions of strategic, operating, and financial plans and objectives; statements of future ambitions and plans; and other statements of future events or conditions, are forward-looking statements. Forward-looking statements are based on current expectations, estimates, projections and assumptions at the time the statements are made. Actual future results, including project plans, schedules, costs, returns, and capacities; ultimate recoveries; operating performance and demand projections could differ materially due to changes in market conditions affecting the oil and gas industry or long-term oil and gas price levels; political or regulatory developments; reservoir performance; the availability of feedstocks; timely completion of development projects; technical or operating factors; the outcome of future commercial negotiations, including final agreed terms and conditions; unforeseen technical or operating difficulties and unplanned maintenance; and other factors discussed under the heading "Factors Affecting Future Results" in the Investor Information section of our website (www.exxonmobil.com) and in Item 1A of our most recent Form 10-K. The term "project" as used in this release can refer to a variety of different activities and does not necessarily have the same meaning as under any government payment transparency reports.

View source version on businesswire.com: https://www.businesswire.com/news/home/20230316005036/en/

Media Relations

(972) 940-6007

Source: Exxon Mobil Corporation

FAQ

What is the significance of ExxonMobil's Beaumont refinery expansion?

The Beaumont refinery expansion is significant as it adds 250,000 barrels per day of capacity, marking the largest U.S. refinery growth since 2012, addressing increasing energy demands.

How much did ExxonMobil invest in the Beaumont refinery expansion?

ExxonMobil invested $2 billion in the Beaumont refinery expansion.

When did the construction of the Beaumont refinery expansion begin?

Construction on the Beaumont refinery expansion began in 2019.

What is the total processing capacity of the Beaumont refinery after the expansion?

After the expansion, the Beaumont refinery's total processing capacity exceeds 630,000 barrels per day.

How does the Beaumont refinery expansion affect ExxonMobil's market position?

The expansion strengthens ExxonMobil's market position by enabling them to meet rising demand for transportation fuels and enhancing crude oil processing from the Permian Basin.