Exxon Mobil plans major new chemical plant in U.S.

Exxon Mobil Corp., the world’s largest publicly traded energy company, is considering a multi-billion-dollar expansion of its giant petrochemical complex east of Houston.

The company estimated the expansion at its Baytown complex about 30 miles east of Houston would provide about 10,000 construction jobs, then 350 permanent jobs once new facilities are up and running.

The plant is anticipated to come online in 2016.

Exxon is looking to take advantage of a surplus of natural gas that’s pushed prices near 10-year lows in the U.S. “We believe the North American natural gas resource is abundant and can support both domestic energy needs as well as exports to the global market,” said company spokeswoman Margaret Ross. “The proposed investment reflects Exxon Mobil’s continued confidence in the natural gas-driven revitalization of the U.S. chemical industry.”

Exxon has filed applications for permits with the U.S. Environmental Protection Agency and the Texas Commission on Environmental Quality to build an ethane cracker at the Baytown complex and two high performance polyethylene lines at its nearby plastics plant in Mont Belvieu.

Exxon expects the review and approval process from government regulators should take about a year. It would then make a decision on whether to move forward with the project.

The company estimates that the Baytown steam cracker would handle up to 1.5 million tons annually and provide 650,000 tons of feedstock for the new lines at the Mont Belvieu plastics operation. Exxon Mobil’s Baytown complex, covering five square miles, already is the largest in the nation and has been in operation since 1920.