TechnipFMC PLC (NYSE: FTI), which has its operational headquarters in Houston, was awarded a contract for work on Exxon Mobil Corp.’s (NYSE: XOM) latest refinery expansion in Beaumont, Texas.
The contract is worth between $500 million and $1 billion, according to TechnipFMC’s Jan. 31 press release. TechnipFMC will be handling engineering, procurement and construction of the project. The project will add four new units — atmospheric pipe still, kerosene hydrotreater, diesel hydrotreater and benzene recovery — that will be integrated into the existing facilities at the refinery.
The expansion is expected to make the refinery the largest in the country.
Irving, Texas-based Exxon, which has a major presence in Houston, announced Jan. 29 that it made a final investment decision and started construction on a third crude distillation unit at the refinery. The refinery currently processes 366,000 barrels of crude oil per day and produces 2.8 billion gallons of gasoline a year. The new unit will add 250,000 bpd to the refinery’s crude processing capacity, a 65 percent increase. With a future total capacity of around 616,000 bpd, Exxon’s refinery would likely rank ahead of Houston-based Motiva Enterprises’ refinery in Port Arthur, Texas, currently the largest nationwide. Motiva’s refinery has a capacity of 603,000 bpd, according to U.S. Energy Information Administration data, though some reports indicate it can process up to 635,000 bpd.
“We are pleased to have been awarded this contract by our long-term client, Exxon Mobil... We look forward to bringing our global project execution capabilities, extensive U.S. Gulf Coast execution experience and leadership in the refining sector to this significant refinery expansion project for Exxon Mobil.” - Nello Uccelletti, President of TechnipFMC’s Onshore/Offshore business
The new unit will process light crude oil from the Permian Basin. A year ago, Exxon announced it planned to triple its total daily production from the Permian Basin — bringing it to more than 600,000 barrels of oil equivalent per day — by 2025.
Archive Press release | January 31, 2019, albeit it is a significant achievement for the global energy leader.
To learn more about TechnipFMC and how they are enhancing the performance of the world’s energy industry, go to TechnipFMC.com and follow them on Twitter @TechnipFMC.