OXEA advances expansion of Bay City chemical complex
OXEA Corp. has secured Kent PLC to deliver a suite of engineering services for a recently approved major specialty chemicals expansion at the operator’s manufacturing complex in Bay City, Tex., about 30 km southwest of Houston.
In line with a broader 3-yr master services agreement signed with OXEA in 2025 under which Kent provides engineering, procurement, and construction management (EPCM) services across OXEA's operations, Kent is currently executing detailed engineering works for the operator’s proposed project to increase the site’s production capacity for propionaldehyde as well as enable full production capabilities for propanol and butanol.
With detailed engineering works now underway, Kent is scheduled to complete its scope of work under the contract later this year, the service provider said in a July 20 press release emailed to OGJ.
Kent said this latest award for the Bay City expansion follows the firm’s completion of front-end engineering design (FEED) on the project earlier this year.
Kent also confirmed it recently completed a laser-scanning campaign across the Bay City operations that resulted in a digital survey updating information on the site’s existing assets that will be used to support future engineering, maintenance planning, and capital projects at the complex.
Officially approved for final investment decision (FID) on July 9, the planned Bay City expansion—representing one of OXEA's largest recent investments in its global oxo chemicals production network—will also expand feedstock availability for the company's carboxylic acids portfolio and create additional capacity for future growth at the US Gulf Coast complex.
The Bay City complex produces oxo intermediates used in coatings, lubricants, plastics, pharmaceuticals, cosmetics, flavors, fragrances, and other industrial applications, the company said.
Project details
Upon announcing FID, OXEA said the investment at Bay City will focus on expanding its core oxo chemistry technologies rather than adding new product lines.
Additional propionaldehyde production specifically will support higher output of propanol and butanol, two important intermediates across multiple downstream chemical value chains, according to the operator.
Increased production at the site also will improve feedstock availability for OXEA's carboxylic acids business while preserving flexibility for future capacity additions beyond the current project’s scope, the company said.
OXEA revealed neither an overall value of its proposed investment in nor specific incremental production capacities to be added as part of the expansion.
Additional contract
Upon taking FID for the planned expansion, OXEA confirmed that Air Liquide USA LLC will design, construct, own, and operate a dedicated on-site synthesis gas (syngas) production unit at the Bay City complex.
Scheduled for completion by yearend 2028, the new unit will deliver synas under a long-term agreement to accommodate increased production capabilities at the complex.
Design of the new syngas unit specifically will enable the recirculation of carbon dioxide (CO₂) back into the reactor to optimize syngas composition and production flexibility.
Reuse of CO₂ within the production process will reduce overall carbon emissions at the site and support a lower-carbon, more environmentally sustainable operation, according to OXEA.
Syngas is a critical feedstock for oxo alcohol manufacturing, supplying hydrogen and carbon monoxide required for hydroformylation and related chemical processes.
Site preparation for Air Liquide’s plant is scheduled to begin during third-quarter 2026, according to OXEA.
About the Author
Robert Brelsford
Downstream Editor
Robert Brelsford joined Oil & Gas Journal in October 2013 as downstream technology editor after 8 years as a crude oil price and news reporter on spot crude transactions at the US Gulf Coast, West Coast, Canadian, and Latin American markets. He holds a BA (2000) in English from Rice University and an MS (2003) in education and social policy from Northwestern University.

