ExxonMobil Considering Cracker, PE and PP plants in China

ExxonMobil is Planning to build a “Multibillion-Dollar” chemical complex in China’s Guangdong. The plant would include a 1.2m tonne/year flexible feed steam cracker, along with this it will have polyethylene (PE) and polypropylene (PP) units. The project is expected to start in 2023, however the company has told that the project’s realisation would depends on its future “competiveness”, as feedstock would need to come mostly from overseas.

In the US many new cracker plants has started, including ExxonMobil. This year the company started 1.5m tonne/year ethylene plant in Baytown, Texas – use ethane as feedstock. In the Chinese government’s tariff list ethane has not been included on US products as the trade war between the two countries furies.

Though, ExxonMobil’s projected cracker in China can use other feedstocks. It includes propane, butane, and naphtha. Some of which are included on China’s updated tariff’s list on imports from the US.

The company has signed a cooperation framework agreement with the Guangdong provincial government to possibly build the complex in the Huizhou Dayawan Petrochemical Industrial Park. The project remains subject to a final investment decision (FID).

“ExxonMobil’s decision to proceed with the project will be based on a number of factors, including receipt of permits and project competitiveness,” the US major said. John Verity, president of ExxonMobil Chemical, said the signature of the agreement with Guangdong’s government showed the firm’s “interest in advancing this project from concept to completion”.

The President of ExxonMobil Chemical also said, “The company is also evaluating other chemicals manufacturing projects in Asia to help meet expected demand growth in the region, and it intends to grow its chemicals manufacturing capacity in Asia-Pacific and North America combined by around 40%.”

Khushboo Pandey,
Research Analyst,
Infoholic Research