ExxonMobil to Invest Over $1 Billion in Antwerp Refinery
Esso Belgium, a division of ExxonMobil Petroleum & Chemical, plans to install a new delayed coker unit at its Antwerp refinery to convert heavy, higher sulfur residual oils into transportation fuels products.
The US company said the new unit at its strategic Antwerp base addresses an industry shortfall in capability to convert fuel oil to products such as diesel. It also will expand the refinery's ability to help meet energy needs throughout northwest Europe, despite a challenging industry environment characterized by "extremely low margins and industry-wide losses, due primarily to excess refining capacity."
ExxonMobil said this is the first of several options being evaluated to further strengthen strategic refineries in Europe. The company's annual Outlook for Energy projects that Europe's demand for diesel fuel will remain high in the coming decades for trucking and other commercial transportation.
"In addition to enhancing the strongly performing Antwerp facility, the new delayed coker unit will further strengthen ExxonMobil's integrated downstream and chemical portfolio in northwest Europe to better compete in the challenging global industry environment," said Stephen Hart, regional director of ExxonMobil Refining & Supply Company.
"This investment will add to our product slate at the Antwerp refinery and deliver much needed cleaner diesel to our European customers," Hart added.
While voicing what some said was a vote of confidence in Europe, where capital spending by multinational companies appears to be taking a back seat to shale-gas powerhouse North America, ExxonMobil urged the governments of EU member states not to block imports of heavy crude from Canada's oil sands, which have been a target of environmental campaigners.
