TechnipFMC has bagged an engineering, procurement, and construction (EPC) contract from ExxonMobil for its Beaumont Refinery expansion project in Texas, US.
Earlier this week, ExxonMobil broke ground on a new unit at the Beaumont Refinery that is expected to increase its crude refining capacity by more than 65%.
TechnipFMC said that the contract value is in the $500m-$1bn range.
The scope of its contract covers the addition of the atmospheric pipe still, kerosene hydrotreater, diesel hydrotreater and benzene recovery units at the oil refinery.
The new units to be added by TechnipFMC will be integrated into the existing facilities at the Beaumont Refinery.
For TechnipFMC, the ExxonMobil contract follows the $1bn plus contract from Middle East Oil Refinery (MIDOR) for the expansion and modernization of the latter’s refinery in Egypt.
TechnipFMC onshore/offshore business president Nello Uccelletti said: “We are pleased to have been awarded this contract by our long-term client, ExxonMobil.
“We look forward to bringing our global project execution capabilities, extensive U.S. Gulf Coast execution experience and leadership in the refining sector to this significant refinery expansion project for ExxonMobil.”
The construction on the third crude unit at the refinery follows ExxonMobil’s final investment decision on the expansion project. The new unit will expand the light crude oil refining capability and overall boost the refinery’s capacity by 250,000 barrels per day.
The new refining unit, which is targeted to be brought into operations by 2022, is supported by the growing crude oil production in the Permian Basin, as per ExxonMobil. The expansion project is expected to create up to 1,850 jobs during construction followed by 40-60 permanent jobs after its completion.
The Beaumont Refinery, which has a processing capacity of 366,000 barrels of crude oil per day, is capable of producing 2.8 billion gallons of gasoline a year.
The refinery produces premium and regular gasoline, low sulfur diesel fuel, jet fuel, liquid petroleum gases, fuel oil, petroleum coke, blendstock and petroleum feedstocks. It has a workforce of nearly 1,100 people, had seen various expansion projects in the past, that include the SCANFiner, BLADE and ISOM projects.