Exxon’s $1bn UK Expansion to Make its First Diesel in 2024
12.01.2023 By Tank Terminals - NEWS

December 1, 2023 [Energy Voice]- Exxon Mobil will complete a $1 billion expansion of diesel production at its Fawley UK oil refinery next year, a key step in curbing the country’s reliance on imports.


The oil major also announced plans to add a new hydrogen plant at Britain’s biggest oil-processing complex, potentially paving the way for the production of sustainable aviation fuel. That unit will run on natural gas, Exxon said.

Exxon (NYSE:XOM) has been working for years on the Fawley diesel facility, which was put on hold when the Covid pandemic prompted a collapse in fuel demand and refining margins. That’s since reversed in Europe, with the profit from turning crude oil into diesel holding above historical averages after sanctions on Russia deprived the region of its biggest external supplier.

The refinery on England’s south coast will boost output of low-sulfur diesel by 40%, the company said in a statement. The project, dubbed Fast, will reach full production in 2025, when the Grangemouth refinery in Scotland is scheduled to stop making the fuel.

While UK diesel demand has struggled to return to pre-pandemic levels, the nation relies on imports for up to about half of its consumption. The Fawley project could help to cut imports by as much as a quarter, according to Exxon.

First production from the expansion will be available in 2024. Exxon had forecast an increase of almost 45%, or 38,000 barrels a day, in ultra-low sulfur diesel output, when it took the final investment decision in 2019.

The hydrogen plant at Fawley would be part of what’s known as the Solent cluster, which brings together companies looking at decarbonizing industry.

Exxon Mobil was awarded funding from the UK government earlier this month to look at the production of sustainable aviation fuel at Fawley, which is linked to London’s Heathrow airport by pipeline.

If the project proceeds, it could provide the UK with 20% of its SAF needs by 2030, according to a statement at the time.


Pro Trial: Access 12,600 Tank Terminal and Production Facilities

12,600 tank storage and production facilities as per the date of this article. Click on the button and register to get instant access to actionable tank storage industry data

Energy-Related Emissions Hit a Record High Last Year Despite Renewables Surge
03.02.2024 - NEWS
March 2, 2024 [Oil Price]- Despite a decline in fossil fuel use in developed economies, global en... Read More
Chinese Oil Product Demand Could Peak by 2025
03.02.2024 - NEWS
March 2, 2024 [Oil Price]- Demand for petroleum products in China could peak before next year, th... Read More
Cheap Spot Prices Boost China’s LNG Imports to Record High for February
03.02.2024 - NEWS
March 2, 2024 [Oil Price]- China imported in February a record volume of LNG for the month, as bu... Read More
Russia’s Rosneft Moves to Sell its German Refinery Assets
03.02.2024 - NEWS
March 2, 2024 [Oil Price]- Russia’s state-controlled oil giant Rosneft has launched a sales pro... Read More