ExxonMobil takes FID on Baton Rouge refinery modernization program

ExxonMobil Corp. is moving forward with its previously proposed plan to invest more than $240 million in modernization projects aimed at ensuring long-term competitiveness of subsidiary ExxonMobil Fuels & Lubricants Co.’s 520,000-b/d integrated refining and petrochemical complex in Baton Rouge, La. (OGJ Online, Dec. 17, 2020).

ExxonMobil has reached final investment decision on a suite of projects that, among other upgrades, will reduce volatile organic compound emissions at the site by 10%, Louisiana Gov. John Bel Edwards, the Louisiana Economic Development (LED), and David Oldreive—ExxonMobil Baton Rouge’s refinery manager—said June 9.

While neither ExxonMobil nor LED revealed additional information regarding specific projects to be included under the capital investment program, LED said it expects project construction will begin later this year.

To secure the Baton Rouge refinery investment, LED provided ExxonMobil the labor solutions of its FastStart state workforce training program as well as access to Louisiana’s Industrial Tax Exemption Program (ITEP). As part of the incentivization program, ExxonMobil has agreed to focus on providing supplier opportunities specifically to North Baton Rouge businesses, according to LED.

Alongside saving 1,300 existing jobs at the refinery, the modernization program will support more than 600 on-site construction jobs during its 3-year execution period.

In its first-quarter 2021 earnings presentation to investors on Apr. 30, ExxonMobil said construction continues to progress on a 450,000-tonnes/year polypropylene (PP) unit at the Baton Rouge complex, which most recently was scheduled for startup sometime in 2021 (OGJ Online, Mar. 1, 2019).