ExxonMobil Corp. has signed a cooperation framework agreement with the government of China’s Guangdong Province to advance discussions concerning proposed construction of a grassroots chemical complex in the Huizhou Dayawan Petrochemical Industrial Park.
Designed to help meet expected demand growth for chemical products in China, the multibillion-dollar project would include a 1.2 million-tonne/year ethylene flexible-feed steam cracker, two performance polyethylene lines, and two differentiated performance polypropylene lines, ExxonMobil said.
Still subject to a final investment decision, ExxonMobil’s proposal to proceed with the project will be based on several factors, including receipt of permits and project competitiveness, the operator said.
If approved, the project is slated for startup in 2023.
“Our agreement with the Guangdong provincial government demonstrates ExxonMobil’s interest in advancing this project from concept to completion,” said John Verity, president of ExxonMobil Chemical Co.
To be configured with advanced proprietary technologies in direct crude steam cracking and performance polymers manufacturing, the new complex would support progress toward China’s national petrochemical development priorities, which include self-sufficiency, diversified feedstock sources, rebalancing fuels vs. chemicals, and advancing competitive technology.
The framework agreement also confirms Guangdong Province’s support in progressing the Huizhou LNG receiving terminal, in which ExxonMobil intends to participate, including supply of LNG, the operator said.
Without disclosing specific details, ExxonMobil said it also is evaluating other chemicals manufacturing projects in Asia to help meet expected demand growth in the region as part of the operator’s broader plan to increase chemicals manufacturing capacity in Asia Pacific and North America by about 40%.
The operator said its proposed growth plans will partly be achieved with the addition of 13 facilities, including two steam crackers in the US as part of the company’s Growing the Gulf initiative investments, which would enable the company to meet increasing demand in Asia and other growing markets (OGJ Online, Feb. 6, 2018).
While the company did not reveal a timeframe for when it might reach FID on the proposed Guangdong complex, announcement of the project follows ExxonMobil Chemical’s commissioning of its 1.5 million-tpy ethane steam cracker at the company’s integrated chemical and refining complex in Baytown, Tex. (OGJ Online, July 26, 2018; June 19, 2014).
Alongside the Baytown cracker, ExxonMobil Chemical and Saudi Arabian Basic Industries Corp. (SABIC) also recently created a joint venture to advance development of their Gulf Coast Growth Ventures project, a 1.8 million-tpy ethane cracker currently planned for construction in San Patricio County, Tex., that, if approved, would reach startup sometime in 2021-22 (OGJ, May 7, 2018, p. 25).
Contact Robert Brelsford at [email protected].
