ExxonMobil Examining Multiple Expansion Opportunities in Wyoming

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Researched by Industrialinfo.com (Industrial Information Resources, Incorporated; Houston, Texas). ExxonMobil Corporation (NYSE:XOM)(Irving, Texas) is investigating the feasibility of several expansion options at its Chute Creek natural gas processing plant near Kemmerer, Wyoming. The plant has a present processing capacity of over 650 mmscfd of natural gas and has secondary units producing 60,000 gallons per day of LNG, liquid helium, and a thirteen-ton per day sulfur recovery unit.

ExxonMobil has recently constructed a 100-megawatt cogen with an acid gas injection system at the facility to dispose of unwanted gas and to produce electricity to power over 84,000 horsepower of electric-drive compressor units composed of ten 4,000 and four 11,000 horsepower Westinghouse units. Two additional 1,000 horsepower Solar Saturn turbine units supplement the electric drive units. The current configuration allows the plant to operate for up to ten years without a major plant-wide maintenance turnaround. Commissioning of the cogen and acid gas system is on going.

Once ExxonMobil fully commissions the latest round of capital expenditures, it will begin feasibility studies in earnest to define the next round of capital outlay. Some of the proposals on the table now include expanding LNG production capabilities, liquid nitrogen, and two new natural gas processing trains.

For about $30 million, the LNG production facilities could be expanded by about 120,000 gallons per day, and a new railroad line would be added to export the production over the existing 6-8 truckloads per day now being loaded. It would be roughly one to two years before any serious progress would be made towards engineering and a production decision.

For about $10 million in expenditure a liquid nitrogen unit with a daily feed capacity of 20 mmscfd of natural gas could be constructed for distribution to the local market. Again, one to two years would pass before any real progress would be made towards either engineering or a production decision.

The two new natural gas processing trains being considered would be another consideration altogether. The trains numbered three and four would be staggered over some years, with construction commencing on train three in two to three years. Each train would have a capacity of 350 mmscfd of natural gas throughput and would cost in the neighborhood of $200 million.

The options are numerous for the Chute Creek facility, but taking ExxonMobil's ability to fund projects internally into consideration, it could be some or all of the above-mentioned possible capital expenditures that get funded. Only time will tell.