American multinational, ExxonMobil Corporation disclosed on April 28 that its Beaumont refinery in Texas is now the second largest in the United States (US) on account of a 250,000 barrel-per-day expansion project. The refinery now has a processing capacity that exceeds 630,000 barrels of oil per day (bopd).
The US$2 billion project broke ground in 2019 and was completed in March 2023. It is considered the largest expansion project for a refinery in the US since 2012. It is also the first establishment to reach such a position in the last decade while helping to meet society’s ongoing need for transportation fuels.
Together with its existing capacity on site, Exxon said during its 2023 first-quarter earnings call that expansion works were completed on budget and two months early. With the summer travel season fast approaching and the market for refined products remaining tight, Chairman and Chief Executive Officer (CEO), Darren Woods said the market will need this capacity. Woods said, “At average margins, we expect the project will deliver annual earnings of between US$200 million and US$300 million.” At April margins, Woods said it will deliver twice that.
Back in March, Karen McKee, President of ExxonMobil Product Solutions had said commitment was maintained for the Beaumont expansion even through the lows of the pandemic, as the company knew consumer demand would return and new capacity would be critical in the post-pandemic economic recovery.
“The new crude unit enables us to produce even more transportation fuels at a time when demand is surging. This expansion is the equivalent of a medium-sized refinery and is a key part of our plans to provide society with reliable, affordable energy products,” the Exxon official had said.
The Beaumont refinery is one of the key cash engines in ExxonMobil’s portfolio, operating alongside key assets in Guyana which are moving at an industry-leading pace. Exxon now leads five sanctioned projects in the oil-rich Stabroek Block which are set to produce over one million barrels per day by 2026.
The American oil giant also posted a record first-quarter profit at US$11.4 billion which was no doubt assisted by production from Guyana’s two operating vessels, the Liza Destiny and Liza Unity.
