ExxonMobil Pumping $1 Billion into U.K. Refinery

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Written by Martin Lynch, European News Editor for Industrial Info (Galway, Ireland)--Exxon Mobil Corporation (NYSE:XOM) (ExxonMobil) has confirmed plans to spend more than $1 billion to expand the U.K.'s largest refinery in Fawley.

The company said that it wants to raise its production of ultra-low-sulphur diesel by almost 45%, or 38,000 barrels per day (BBL/d), along with logistics improvements. Industrial Info can confirm that the investment is significantly larger than the company had originally planned when it announced plans to invest £500 million ($646 million) in Fawley last September. For additional information, see September 24, 2018, article - ExxonMobil Plans £500 Million Spend at U.K. Refinery.

ExxonMobil said that the investment will help meet demand in the U.K. market for high-quality fuels, reduce the need for diesel imports and allow the site to process a wider selection of crude oils. The U.K. imported about half of its diesel supply in 2017.

The more than $1 billion investment will cover the costs of a hydrotreater unit to remove sulphur from fuel and a hydrogen plant, both of which will help improve the refinery's overall energy efficiency. The company said that "ultra-low-sulphur fuels lead to improved air quality when powering engines on tractor-trailers, buses, marine vessels and off-road equipment." Industrial Info is tracking all of the key projects planned for Fawley. Detailed engineering and design is underway, with construction--which will create 1,000 jobs--scheduled to start later this year subject to regulatory approval. Commissioning is expected in 2021.

"ExxonMobil continues to invest in the Fawley refinery and chemical plant, Britain's largest integrated facility," said Bryan Milton, president of ExxonMobil Fuels and Lubricants Company. "This investment will make Fawley refinery the most efficient in the United Kingdom, supporting Esso's industry-leading logistics and fuels marketing operations."

Fawley, home to Esso Petroleum Company and ExxonMobil Chemical has a mile-long marine terminal that handles around 2,000 ship movements and 22 million tonnes of crude oil and other products every year. The refinery processes around 270,000 barrels of crude oil a day--20% of U.K. refinery capacity--and approximately one in six cars in the U.K. run on fuel produced there. In March, Industrial Info reported that ExxonMobil had earmarked $24 billion for capital expenditures in 2018 and planned to ramp that up to an average of $30 billion during 2023 to 2025. Industrial Info is tracking nearly $44 billion in active ExxonMobil projects. For additional information, see March 8, 2018, article - ExxonMobil Expects to Double Earnings by 2025 as it Pours More into Capex.

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