ExxonMobil is expanding its business in Permian Basin

ExxonMobil is expanding its business in Permian Basin

oilExxonMobil and Qatar Petroleum announced a $10 billion Golden Pass liquefied natural gas export facility in Sabin Pass, Texas. This is part of ExxonMobil’s five-year plan to invest $50 billion in the expansion of its U.S. operations

It is estimated 16 million tons of LNG per year could be processed. It is going to have an impact of $31 billion economic impact in the U.S. and generate almost $5 billion in direct federal, state and locale tax revenues.

The estimated completion of the project is 2024

McDermott International has been awarded the contract along with Chiyoda International Corp and Zachry Group. The contract might be in the excess of $1 billion but no amount has been confirmed officially.

The facility will have three 5.2 million tons per year trains and the team will provide engineering, procurement, construction and commissioning services.

Richard Heo, senior vice president of McDermott for North, Central and South America stated: “We will apply not only our vertically integrated capabilities but also some of the best practices and lessons learned for major construction projects in the region. We will also leverage the existing relationships we have with our partners and our customers to ensure the Golden pass project is a success”.

One project is the expansion of a light crude oil refinery in Beaumont Texas, that was announced by ExxonMobil. The new construction is underway and expected to create 1,850 construction jobs through the facility’s scheduled in-service date in 2022. The project will increase the company processing capacity by 65%.

ExxonMobil in joint venture with Saudi Arabian company SABIC is part of Gulf Coast Growth Ventures that is currently building a $10 billion ethane steam cracker plant near Corpus Christi Texas. The company building is Wood company that is based in the UK as the engineering, procurement and construction contractor for the project.

There are a lot of movements in the Permian basin with expansion.