European Chemical Industry News & Insights

ExxonMobil to Boost Ultra-Low Sulfur Diesel Output at Fawley Refinery

At a glance
  • The expansion will increase ultra-low sulfur diesel production by 38,000 barrels per day.
  • The investment exceeds $1 billion and includes a hydrotreater unit and hydrogen plant.
  • Construction begins in late 2019, with startup expected in 2021.
  • At its peak, the project will support up to 1,000 construction jobs.

Project Overview

ExxonMobil has decided to expand the Fawley refinery in the UK to boost ultra-low sulfur diesel production by nearly 45%, or 38,000 barrels per day. This expansion includes significant logistics improvements.

Investment and Infrastructure

The project involves an investment of over $1 billion, which will fund the installation of a hydrotreater unit to remove sulfur from fuel and a new hydrogen plant. These additions will enhance the refinery's overall energy efficiency.

Environmental Impact

Ultra-low sulfur fuels contribute to improved air quality when used in modern engines for tractor-trailers, buses, marine vessels, and off-road equipment. This expansion will also reduce the UK's reliance on imported diesel, which accounted for about half of its supply in 2017.

Timeline and Employment

Detailed engineering and design work is currently underway. Construction is set to begin in late 2019, pending regulatory approval, with the startup expected in 2021. The project will create up to 1,000 construction jobs at its peak.

Strategic Location

Located on Southampton Water, the Fawley site offers strategic access to distribution logistics across southern England and export routes to other markets in Europe and the Atlantic basin.

Global Context

This expansion is part of ExxonMobil's broader strategy to enhance the earnings potential of its downstream business by 2025, alongside recent investments in refineries on the U.S. Gulf Coast, Rotterdam, Antwerp, and Singapore.