Texas-based oil and gas corporation ExxonMobil has made a final investment decision to expand the Fawley refinery in the UK to increase production of ultra-low sulfur diesel.
The Fawley refinery is located on Southampton Water, UK, and the expansion is intended to increase the production by approximately 45% or 38,000 barrels per day, along with logistics improvements.
In addition, the Fawley refinery site has strategic access to distribution logistics across southern England and export access to other markets in Europe and the Atlantic basin.
The refinery expansion is expected to help reduce the need to import diesel into the UK, as the country imported approximately half of its supply in 2017.
ExxonMobil fuels and lubricants president Bryan Milton said: “ExxonMobil continues to invest in the Fawley refinery and chemical plant, Britain’s largest integrated facility. This investment will make Fawley refinery the most efficient in the United Kingdom, supporting Esso’s industry-leading logistics and fuels marketing operations.”
The expansion project will include construction of a hydrotreater unit to remove sulfur from fuel, supported by a hydrogen plant to improve the refinery’s overall energy efficiency.
The detailed engineering and design of the expansion is underway and the construction is expected to start in late 2019. The expansion is subject to the regulatory approvals and is expected to be operational by 2021. During the peak construction phase, the project is expected to employ up to 1,000 people.
ExxonMobil claims that along with its recent investments in its refineries at US Gulf Coast, Rotterdam, Antwerp, and Singapore, the current project also would contribute to its target to increase the earnings potential of its downstream business by 2025.
Recently, ExxonMobil has made a final investment decision to expand its integrated manufacturing complex located in Singapore, as part of its plan to further enhance facility’s competitiveness.
The expansion of the integrated complex is intended to upgrade the product slate including fuel oil and other bottom-of-the-barrel crude products to higher-value lube base stocks and distillates.
Construction on the project is scheduled to begin in second half of 2019 with commissioning planned in 2023.