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ExxonMobil Delays New Polyethylene Project

Zhonghua Chemical Network 2025-10-11 09:35:08

Recently, ExxonMobil announced that it will delay the development of a proposed new polyethylene (PE) project. In a statement, ExxonMobil said, "Based on current market conditions, we will slow the advancement of the 'Coastal Plains Project.'" The company had previously been considering implementing this project in Calhoun County, Texas.

It is reported that ExxonMobil originally planned to build an ethane cracker with an annual ethylene production capacity of 2.2 million tons as part of the "Coastal Plain Project." At the same time, it planned to construct a downstream metallocene linear low-density polyethylene (mLLDPE) plant, with the production capacity yet to be finalized, initially considered to be between 1.8 million and 2.7 million tons per year.

The "Coastal Plains Project" is currently in the initial planning stages, and ExxonMobil has not yet announced a final investment decision (FID). The project came to light from materials submitted by ExxonMobil for the application of Texas tax incentive programs. According to the application documents, the "Coastal Plains Project" is currently in its second phase of development, with construction possibly starting as early as 2026 and expected to be operational around 2031. Furthermore, ExxonMobil mentioned in the application that it is considering similar projects in various locations, including the Middle East, other regions of North America, China, India, and Indonesia. Notably, the company signed a memorandum of understanding with the Indonesian government in November 2023 to explore the possibility of undertaking petrochemical projects in that region.

ExxonMobil did not specify the market environment details that led to the project delay, but market participants noted that since the project application was submitted at the end of 2024, many changes have occurred in the global market. On one hand, after the U.S. imposed tariffs on most regions worldwide, numerous economists have lowered their global GDP growth forecasts; on the other hand, the ethylene and polyethylene markets have long faced issues of overcapacity, with ICIS predicting that this market is unlikely to bottom out and rebound until 2028 to 2029. Previously, Dow Chemical had already suspended its "Path2Zero polyethylene project" in Canada, which had reached a final investment decision at the time.

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ExxonMobil Delays New Polyethylene Project

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