Exxon Mobil Corp (XOM.N) set to significantly increase the production of gasoline and diesel at its Beaumont, Texas, refinery, completing a $2 billion expansion that was first considered nine years ago.
According to the sources, a 250,000 barrels per day (bpd) crude distillation unit (CDU) is anticipated to begin operating by January 31 at the 369,000 bpd refinery, making Beaumont the second-largest refinery in the country.
It adds the equivalent of a mid-sized refinery and goes online as planned at a time when U.S. President Joe Biden has been pressuring refiners to produce more fuels or face penalties. It is the first significant expansion to U.S. oil processing in almost a decade. Each day, the unit will add 250,000 barrels of all new supply for the refined products market.
Turning on the new equipment will not immediately generate big new volumes of gasoline and diesel.
The new CDU, which will be the third at Beaumont, will increase the refinery’s capacity by 68%.