ExxonMobil to Fund Polypropylene Unit to Expand Baton Rouge Operations

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  • Gulf Coast polypropylene capacity to increase by 450,000 tons per year
  • Expansion positions Baton Rouge chemical facility for further growth
  • Construction begins in 2019; production startup in 2021

IRVING, Texas--(BUSINESS WIRE)-- ExxonMobil said today that it will fund 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.

“Growth in feedstock supply along with the increase in global demand for chemical products continues to drive our strategic investments and expansion along the Gulf Coast,” said John Verity, president of ExxonMobil Chemical Company. “We’re well positioned to meet the demand for these high-performance products and investing further in Baton Rouge enhances our facility’s competitiveness.”

Polypropylene is a versatile material that can help improve the safety and performance of everyday consumer products and help improve vehicle fuel efficiency when used to manufacture lighter-weight auto parts.

The engineering, procurement and construction contract has been awarded to Baton Rouge-based Turner Industries and Jacobs Engineering. The companies will use local workers to design and construct the new facility.

This new project is in addition to ExxonMobil’s previously announced plans to invest $20 billion to build and expand manufacturing facilities in the U.S. Gulf region as part of its Growing the Gulf initiative, which is expected to create more than 45,000 high-paying jobs across the region.

Growing the Gulf projects include a new state-of-the-art aviation lubricants blending, packaging and distribution facility in the Baton Rouge area as well as refining and chemical expansions at ExxonMobil’s Beaumont and Baytown facilities. ExxonMobil and SABIC have also created a new joint venture to advance development of the Gulf Coast Growth Ventures project, a 1.8 million metric ton ethane cracker currently planned for construction in San Patricio County, Texas. And, earlier this month, ExxonMobil and Qatar Petroleum announced a decision to proceed with the development of the Golden Pass LNG export project in Sabine Pass, Texas.

ExxonMobil’s integrated operations in Baton Rouge include a 502,000 barrel-per-day refinery, as well as chemical, lubricants and polyethylene plants. ExxonMobil has more than 2,500 employees in the Baton Rouge area and its operations account for approximately 1 in every 10 jobs in the region.

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ExxonMobil, the largest publicly traded international oil and gas company, uses technology and innovation to help meet the world’s growing energy needs. ExxonMobil holds an industry-leading inventory of resources, is one of the largest refiners and marketers of petroleum products and its chemical company is one of the largest in the world. For more information, visit www.exxonmobil.com or follow us on Twitter www.twitter.com/exxonmobil.

Cautionary Statement: Statements of future events or conditions in this release are forward-looking statements. Actual future results, including project plans, costs, schedules; and capacities, business results, and economic impacts could differ materially due to changes in market conditions affecting the oil, gas and petrochemical industries or long-term price levels for oil, gas, refined products and petrochemicals; political and regulatory developments including changes in environmental laws and regulations and obtaining necessary permits and approvals; timely completion of construction projects; the ability to implement operating and management improvements as planned; the actions of competitors; the occurrence and duration of economic recessions; the outcome of commercial negotiations; and other factors discussed in this release and under the heading “Factors Affecting Future Results” on the Investors page of ExxonMobil’s website at www.exxonmobil.com. Forward-looking statements in this release are based on management’s information and belief at the time of the release and we assume no duty to update these statements as of any future date. This release is not intended to override the corporate separateness of various entities, including affiliated companies.

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Source: Exxon Mobil Corporation

Released March 1, 2019