ExxonMobil (NYSE: XOM) has announced that it has made a final investment decision to proceed with a multi-billion dollar chemical complex in the Dayawan Petrochemical Industrial Park in Huizhou, Guangdong Province, in China.
The complex will produce performance polymers used in packaging, automotive, agricultural and consumer products for hygiene and personal care, according to ExxonMobil, which added that the facility will help meet expected demand growth for performance chemical products in the country. The company noted that, as part of its ongoing commitment to advancing climate solutions, the site will feature “industry-leading” technologies to improve energy efficiency.
ExxonMobil revealed that construction is already underway on the greenfield project, which includes a flexible feed steam cracker, three performance polyethylene lines and two differentiated performance polypropylene lines. The steam cracker is expected to have a nameplate capacity of approximately 1.6 million metric tons per year.
“Demand for performance polymers will continue to increase in China, and we’re well positioned to meet the needs of that growing market,” Karen McKee, the president of ExxonMobil Chemical Company, said in a company statement.
“We look forward to progressing this exciting project as we work to build a competitive growth platform in Dayawan,” McKee added in the statement.
In September 2018, ExxonMobil announced that it had signed a cooperation framework agreement with the Guangdong Provincial People’s Government to advance discussions concerning the proposed construction of a chemical complex in the Huizhou Dayawan Petrochemical Industrial Park. In a company statement at the time, ExxonMobil noted that it was also evaluating other chemicals manufacturing projects in Asia to help meet expected demand growth in the region.
ExxonMobil has operated in China for more than a century. The company’s current business interests include a presence in downstream, chemicals and liquefied natural gas. ExxonMobil Chemical is one of the largest chemical companies in the world, according to the company’s website, which outlines that its facilities convert crude oil and natural gas into petrochemical feedstocks that are used in medical equipment, electronics, clothing, vitamin capsules, tires and many other products.
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