On Tuesday, Exxon Mobil (NYSE:$XOM) commenced production at a brand new petrochemical facility in Mont Belvieu, Texas, just two short months after Hurricane Harvey tore through the U.S. Gulf Coast and crushed the U.S. refining and specialty chemical hub.
Here’s what we know so far!
The first of two lines churning out polyethylene – which is the most common plastic used in manufacturing – will increase the plant’s production by roughly 650,000 tons per year. Further, the next line at the new petrochemical facility will match that addition and bring total output at the plant to roughly 2.5 million tons per year. Combined, this will make the Mont Belvieu plant one of the biggest polyethylene plants in the world.
Thanks to the new facility, Exxon Mobil is now in a position to take advantage of the growing market both at home and abroad for plastics as emerging markets continue to purchase more and more packaged food and consumer products. According to IHS Markit, the demand for the base chemical ethylene is forecasted to grow by 5.5 million to 6 million tons a year, assuming 2.5 to 3% GDP growth.
Exxon Mobil will be shipping a “significant portion” of its polyethylene output from the Mont Belvieu plant to the port of Houston.
“The expansion of our Mont Belvieu facility further enhances our ability to meet growing global demand for high-performance polyethylene products around the world,” president of Exxon Mobil Chemical Co. Neil Chapman said in a statement.
Featured Image: depositphotos/alexeynovikov
