EXXON SLATES BIG ETHYLENE EXPANSION

May 29, 1995
Exxon Chemical Co., Houston, has let engineering and construction contracts for a 1.54 billion lb/year ethylene expansion at its Baytown, Tex., olefins plant. Exxon awarded M.W. Kellogg Co., Houston, a turnkey contract for engineering, procurement, and construction services on most of the project. Birwelco Ltd., U.K., under a separate contract is to build the ethylene furnaces for the project using Exxon technology.

Exxon Chemical Co., Houston, has let engineering and construction contracts for a 1.54 billion lb/year ethylene expansion at its Baytown, Tex., olefins plant.

Exxon awarded M.W. Kellogg Co., Houston, a turnkey contract for engineering, procurement, and construction services on most of the project. Birwelco Ltd., U.K., under a separate contract is to build the ethylene furnaces for the project using Exxon technology.

Kellogg and Exxon have begun preliminary engineering. Plans call for construction of the ethylene units to begin in 1996 with completion expected in late 1997. The project will boost Exxon's Baytown ethylene capacity to more than 4 billion lb/year.

Exxon Chemical produces about 1.9 billion lb/year of ethylene at a Baton Rouge, La., plant. The company also makes ethylene in Canada, the U.K., and France. Along with interests in ethylene plants in Australia, Japan, and Saudi Arabia, Exxon will be able to produce more than 9.2 billion lb/year of ethylene after the new capacity at Baytown comes on line.

Exxon Chemical Senior Vice-Pres. Ken N. Robertson said more ethylene capacity on the U.S. Gulf Coast will help Exxon take advantage of a recent advance in plastic manufacturing technology.

The company in April said it had produced a new type of polyethylene at its Mont Belvieu, Tex., plant. The process involved using gas phase reactors operating in a supercondensed mode. Exxon said the new technology produces stronger, clearer, more puncture resistant plastic. As a result, Exxon intends to use most of the new ethylene supply internally.

Some new capacity will be needed to meet demand growth among Exxon contract customers, Robertson said.

Kellogg Chief Executive Officer Donald C. Vaughn said Kellogg and Exxon Chemical were able to agree on a turnkey contract because of their high technical skills and longtime relationship.

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