ExxonMobil mulls major expansion of Beaumont refinery into nation’s largest
7/31/2015 12:00:00 AM
ExxonMobil is studying a proposal to expand its 334,600-bpd refinery in Beaumont, Texas, into the largest in the US, news agency Reuters reported.
According to the Reuters report, ExxonMobil has pulled together a group of experts at the plant to do more detailed studies on potentially adding a third crude distillation unit (CDU).
The new CDU could make the Beaumont refinery the largest in the US, with capacity rising to as much as 850,000 bpd, Reuters reported.
The expansion would cost several billion dollars and take several years to construct. ExxonMobil declined to comment on the report.
According to Reuters, the group studying the expansion is called "Crude C", in reference to the proposed third CDU.
"The Crude C group is studying how to build the new crude unit and where to put it," one of the sources said to Reuters. "They have offices in the refinery and are running around in their own trucks."
Last month, the United Steelworkers union (USW) representing Beaumont refinery workers agreed to a six-year contract with ExxonMobil, rather than the usual four-year contract agreed to at most US refineries with USW workers.
Reuters cited sources familiar with ExoxnMobil's plans as saying the company lobbied for the longer pact to assure that there are no work stoppages during construction of the possible expansion.
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