XOM Exxon Mobil Corp

By Colin Kellaher

Exxon Mobil Corp. (XOM) on Thursday said it would invest $2 billion to expand the chemical plant at its giant Baytown, Texas, complex, taking advantage of its rising production of natural gas--a key feedstock for chemicals and plastics--from the Permian Basin.

The Houston energy giant said the expansion, which will create about 2,000 jobs during construction, is expected to start up in 2022.

Exxon said the expansion includes a new unit that will produce about 400,000 tons of Vistamaxx polymers a year. Vistamaxx offers higher levels of elasticity, softness and flexibility, which Exxon said will help reduce the amount of materials used in making everyday products.

Exxon said the project will also mark its entry into the market for linear alpha olefins, which are used in applications such as high-performing engine and industrial oils, waxes and building blocks for surfactants, and polyethylene plastic for packaging. The company said the new unit will produce about 350,000 tons of linear alpha olefins annually.

In addition to the chemical plant, Exxon's 100-year-old Baytown complex includes a refinery, a plastics plant and a technology center.

"Our Baytown chemical expansion will put us in a solid position to maximize the value of increased Permian Basin production and will deliver higher-demand, higher-value products produced at our Gulf Coast refining and chemical facilities," said Darren Woods, Exxon's chairman and chief executive, adding that the company expects global demand for chemicals to outpace energy demand growth over the next 20 years.

Write to Colin Kellaher at colin.kellaher@wsj.com

(END) Dow Jones Newswires

May 02, 2019 10:55 ET (14:55 GMT)

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