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ExxonMobil looks to invest more than $240 million in Baton Rouge refinery
Posted on 12/17/20 at 11:25 am
Posted on 12/17/20 at 11:25 am
quote:
ExxonMobil looks to invest more than $240 million in Baton Rouge refinery
LINK
After about two years of planning, ExxonMobil proposes investing several hundred million dollars in its Baton Rouge refinery to make the site more competitive and position it for a potential major expansion in the coming years.
The projects would collectively modernize the refinery and petrochemical complex to enable the processing of new types of crude oil while reducing environmental emissions at the site. While the total investment is expected to be several hundred million dollars, only $240 million of the amount was disclosed as eligible for potential property tax abatements.
A final investment decision about whether to move forward is expected in 2021 and is partially dependent upon tax breaks being approved. Construction could begin about halfway through the year.
The investment would increase the refinery's flexibility to process different types of domestic crude oil economically, which increases the competitiveness of the site, according to ExxonMobil. The Baton Rouge refinery has some disadvantages compared to industrial sites in Texas, which are closer to highly productive oil fields and their pipelines and have more direct access to the Gulf of Mexico for exporting refined products.
"Every ship that we bring in and out of Baton Rouge is a lot more expensive than the Houston Ship Channel, which is a lot closer to open water. These create structural disadvantages in Louisiana," said Gloria Moncada, the ExxonMobil Baton Rouge Refinery manager. “The project that we’re trying to bring forward is helping to level out that disadvantage to make sure our refinery stays competitive in the Gulf Coast.”
New technology being deployed would enable better extraction of carbon solids from crude oil during the refining process and lower associated costs. After the investment, the refinery would be able to handle crude oil from the Permian Basin in West Texas and oil sands crude from Canada. Plans include a new mooring system that would be more efficient and enable larger ships and cargoes for export of finished products.
On the environmental front, the company plans to reduce emissions of volatile organic compounds by 10% at the refinery.
quote:
The modernization project would support 600 construction jobs each year between 2021 and 2023. There are no new permanent jobs tied to the proposed project.
ExxonMobil has 1,300 existing jobs, which include engineers, operators and technicians working at the refinery. The business expects to hire about 20 north Baton Rouge residents through its free training program through 2023 in conjunction with the upgrades. The company expects to generate $5 million in sales taxes in 2021.
quote:
ExxonMobil is still working on a different Baton Rouge investment, a $500 million polypropylene production expansion, which has slowed somewhat due to the pandemic.
ExxonMobil is more than two-thirds through its $20 billion capital investment commitment for the U.S. Gulf Coast expansion efforts. Much of the previously disclosed investment has been in Texas rather than Louisiana.
20
Posted on 12/17/20 at 11:27 am to goofball
Until Together Baton Rouge gets involved.
Posted on 12/17/20 at 11:28 am to goofball
quote:
"Every ship that we bring in and out of Baton Rouge is a lot more expensive than the Houston Ship Channel, which is a lot closer to open water. These create structural disadvantages in Louisiana," said Gloria Moncada, the ExxonMobil Baton Rouge Refinery manager.
Why you don't let women be managers.
Posted on 12/17/20 at 11:29 am to JohnWicksDawg
quote:
Until Together Baton Rouge gets involved.
They are already involved.
Posted on 12/17/20 at 11:31 am to doubleb
quote:
They are already involved.
Oh shite. ExxonMobil in Baton Rouge is on borrowed time.
Posted on 12/17/20 at 11:32 am to goofball
$240 million? 
How much capital do you think that place needs? It’s a hell of a lot more than $240MM.
How much capital do you think that place needs? It’s a hell of a lot more than $240MM.
Posted on 12/17/20 at 11:34 am to Tbonepatron
SWB will frick this up
And Gravy will criticize it unless XOM offers him some cash
ETA or a 8 piece spicy
And Gravy will criticize it unless XOM offers him some cash
ETA or a 8 piece spicy
This post was edited on 12/17/20 at 11:35 am
Posted on 12/17/20 at 11:36 am to JohnWicksDawg
quote:
Until Together Baton Rouge gets involved.
With the economy in the condition that its in right now, Together BR would be beyond stupid to try to derail this.
I with BR had "strong leadership" to tell this group to F off... *cough*
I know yall remember the downtown press conference the mayor did after the whole ITEP thing with Exxon...
Posted on 12/17/20 at 11:38 am to goofball
quote:
Much of the previously disclosed investment has been in Texas rather than Louisiana
Can't imagine why...
Posted on 12/17/20 at 11:39 am to goofball
can't let big oil make investments into our liberal utopia
...until they up the money so that some of it goes into government pockets
...until they up the money so that some of it goes into government pockets
Posted on 12/17/20 at 11:42 am to goofball
quote:
Every ship that we bring in and out of Baton Rouge is a lot more expensive than the Houston Ship Channel, which is a lot closer to open water. These create structural disadvantages in Louisiana," said Gloria Moncada, the ExxonMobil Baton Rouge Refinery manager. “The project that we’re trying to bring forward is helping to level out that disadvantage to make sure our refinery stays competitive in the Gulf Coast
This person has no clue what she is talking about. Is it closer to open water yes, but the Pilot situation in Houston is absurd! If the vessel misses their pilot window by an hour there is potential to sit at the sea buoy for over a week since it is a first come first served pilot system. This is not the case with the river, if a pilot is scheduled, you have a pilot for your vessel.
I deal with customers all the time who are complaining about a vessel being delayed at its next load port or next discharge port due to the congestion in Houston. This creates expenses for demurrage for the charterer who is waiting to berth in that port. Taking the extra 1.5-2 days to navigate the river benefits the charterer by not having these delays at Houston port. Basically the only way a vessel will be held out of the river is if it does not meet the draft restriction set in place by low or high river stages.
Posted on 12/17/20 at 11:43 am to goofball
Studies and Buffets for Broome's shite squad.
Posted on 12/17/20 at 11:45 am to BeaverPRO
quote:
This person has no clue what she is talking about.
Why you don't let women be managers.
Posted on 12/17/20 at 11:47 am to goofball
quote:
. The business expects to hire about 20 north Baton Rouge residents through its free training program through 2023
Which if they pan out, and make it past the probationary period would no longer be NBR residents. They’ll haul arse out of that shithole area with a quickness.
Posted on 12/17/20 at 11:51 am to BeaverPRO
quote:
This person has no clue what she is talking about. Is it closer to open water yes, but the Pilot situation in Houston is absurd! If the vessel misses their pilot window by an hour there is potential to sit at the sea buoy for over a week since it is a first come first served pilot system. This is not the case with the river, if a pilot is scheduled, you have a pilot for your vessel.
I deal with customers all the time who are complaining about a vessel being delayed at its next load port or next discharge port due to the congestion in Houston. This creates expenses for demurrage for the charterer who is waiting to berth in that port. Taking the extra 1.5-2 days to navigate the river benefits the charterer by not having these delays at Houston port. Basically the only way a vessel will be held out of the river is if it does not meet the draft restriction set in place by low or high river stages.
So if you are right, wouldn't that make the "we need tax breaks to be more economical than Texas" argument not as strong?
It comes down to, who has who by the balls here? If Houston is that bad, then maybe XOM doesn't really think expanding in Texas is a great idea, and that makes the tax break less likely to get approved. If on the other hand, XOM saying the hell with BR and building new facilities / renovating facilities in Texas (instead of BR) and mothballing BR is a possibility, it makes the tax breaks more likely to be supported.
Posted on 12/17/20 at 11:58 am to goofball
quote:
ExxonMobil is more than two-thirds through its $20 billion capital investment commitment for the U.S. Gulf Coast expansion efforts. Much of the previously disclosed investment has been in Texas rather than Louisiana.
My brother is an XOM engineer involved in the new Corpus Christi project.
Posted on 12/17/20 at 12:04 pm to LSUFanHouston
quote:
If Houston is that bad, then maybe XOM doesn't really think expanding in Texas is a great idea
XOM may not be spending money themselves, but their service providers in Texas are.
My company just completed a $120 million expansion for XOM's first ever clean products blending hub, mostly with the intent of loading vessels for export. We average 50 vessels a month across 9 docks along the Houston Ship Channel...right now we're loading 2 a week for XOM, and expect that number to grow as XOM figures out how to schedule within a blending hub such as ours.
Posted on 12/17/20 at 12:06 pm to offshoreangler
quote:
XOM may not be spending money themselves
They're building a chemicals plant from scratch in Corpus Christi. Opens in 2021.
Posted on 12/17/20 at 12:07 pm to goofball
quote:
The business expects to hire about 20 north Baton Rouge residents through its free training program through 2023 in conjunction with the upgrades.
Take that St. George!
Posted on 12/17/20 at 12:10 pm to LSUFanHouston
quote:There are other costs and considerations that are taken into account other than transportation.
So if you are right, wouldn't that make the "we need tax breaks to be more economical than Texas" argument not as strong?
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