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ExxonMobil delays Beaumont

refinery expansion start-up

TEXAS SUPER-MAJOR ExxonMobil is reportedly super-major scaled back its Permian drilling
delaying the start-up of an expansion at its plans dramatically this year as the downturn
Beaumont refinery on the Texas Gulf Coast by took hold.
a year owing to depressed demand as a result of Motiva’s refinery previously had a capacity
the coronavirus (COVID-19) pandemic. Citing of 607,000 bpd. However, on its website, the
sources familiar with the matter, both Reuters company – a subsidiary of Saudi Aramco – now
and Bloomberg reported that the project was says that its plant has a capacity of 630,000 bpd,
now anticipated to start up in 2023 instead of meaning it would still narrowly edge out the
2022. Beaumont refinery after its expansion.
The expansion will make Beaumont one of Motiva announced this week that it would cut
the largest two refineries in the US, along with 200 jobs in Port Arthur and Houston, illustrat-
Motiva Enterprises’ plant in Port Arthur, Texas. ing that it has also been hit by the downturn in
It entails adding a crude distillation unit (CDU) demand for fuel.
with a capacity of 250,000 barrels per day, bring- In an editorial this week, the Beaumont Enter-
ing the Beaumont refinery’s overall capacity to prise commented that the demand outlook for
619,000 bpd. refined products looked bleak even beyond the
The CDU is being built in modules that will COVID-19 pandemic. The article cited the rise
be assembled at the Beaumont refinery, Reuters of electric vehicles (EVs) as one trend that the
reported its sources as saying. newspaper expected to have a more significant
ExxonMobil had been planning the expan- impact in the longer term. The Texas Gulf Coast
sion to help accommodate its growing crude – a hub for petrochemicals and refined products
production in the Permian Basin. However, the – will continue to watch these trends closely.™

Venture Global takes steps

forward on second plant

LOUISIANA US-BASED Venture Global LNG has been noted that if Plaquemines goes ahead, it could be
authorised by regulators to proceed with limited the only US LNG project to enter construction in
site preparation for its Plaquemines LNG project 2020 after most other developers delayed their
in Louisiana. According to the company’s web- own plans.
site, early construction work at Plaquemines Plaquemines LNG would have a capacity of
is scheduled to kick off in mid-2020, ahead of 20mn tpy, and has been estimated by analysts
financial close on the project late this year. The to cost around $8.5bn. Venture Global says the
project would enter service in 2023. facility would have an identical configuration to
Construction is already Venture Global already has another export Calcasieu Pass LNG. The company has signed
underway on Venture terminal under construction in Louisiana – the 20-year sales and purchase agreements (SPAs)
Global’s Calcasieu Pass 10mn tonne per year (tpy) Calcasieu Pass LNG, with France’s EDF and Poland’s PGNiG for vol-
LNG terminal. which is due to enter service in late 2022. The umes from Plaquemines.
company has reported that it recently raised Venture Global also had a third planned
the roof on the second LNG storage tank at the Louisiana export terminal in the works. The
Calcasieu Pass site. In addition, Venture Global Delta LNG project would also have a capacity of
said in May that the first modules for the export 20mn tpy, though it may be constructed in two
facility’s 720-MW combined cycle gas turbine 10mn tpy phases. According to Venture Glob-
(CCGT) power plant had arrived at the site. al’s website, construction is pegged to begin in
The Calcasieu Pass project is estimated to cost the second half of 2021, assuming all regulatory
around $4.5bn. approvals are obtained on schedule.
The company’s push to advance construction It would be surprising, however, if all of the
on a second – and larger – project comes as the company’s plants proceed as currently scheduled
LNG industry is struggling to absorb a global given the scepticism over the potential for new
oversupply amid low demand. Indeed, Reuters projects to enter the market in the medium term.™

Week 24 18•June•2020 www. NEWSBASE .com P15