ExxonMobil considers upgrading Baton Rouge refining complex

ExxonMobil Corp. is considering a more than $240-million investment on an initial round of modernization projects aimed at ensuring long-term competitiveness of subsidiary ExxonMobil Fuels & Lubricants Co.’s 518,000-b/d integrated refining and petrochemical complex in Baton Rouge, La.

Still pending final engineering, design, and investment decisions, the proposed suite of potential projects would involve works to improve the refinery’s processing capability and increase its flexibility for meeting market demand, as well as installation of technology that would reduce volatile organic compound emissions at the site by 10%, Louisiana Gov. John Bel Edwards, the Louisiana Economic Development (LED), and Baton Rouge Area Chamber (BRAC) said in separate Dec. 16 releases.

“I’m very excited about the positive potential of this investment for ExxonMobil and for [Louisiana], especially during this challenging economic time for industry, [and] [w]e look forward to working with Gov. Edwards and our local community stakeholders in partnership as we move toward a final [investment] decision (FID),” said Gloria Moncada, plant manager of the Baton Rouge refinery.

To support the proposed investment, LED said it has offered ExxonMobil the comprehensive 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 would, in turn, focus on providing supplier opportunities specifically to North Baton Rouge businesses, according to LED and BRAC.

While neither LED, BRAC, or ExxonMobil have officially revealed additional information regarding specific projects to be included in the potential spending plan, the proposed investment program, if approved, would pave the way for more extensive works at the site, according to Moncada.

“This suite of projects positions our site for future investment at our refinery and chemical plants in Baton Rouge,” Moncada said without disclosing further details.

Seemingly dependent upon ITEP incentives, ExxonMobil could reach FID on the initial investment plan in 2021, LED said.

In its latest presentation to investors, ExxonMobil said it continues to progress with construction of a 450,000-tonnes/year polypropylene (PP) unit at the Baton Rouge complex, which remains on track for startup sometime in 2021 (OGJ Online, Mar. 1, 2019).