Exxon Mobil (XOM) has started a reconfiguration project at its 588K bbl/day refinery and petrochemical plant in Baytown, Texas, intended to boost production of diesel and higher-value base stocks, Dow Jones reported Thursday.
Once the project is expected to begin operations in 2028, Exxon (XOM) said it will be the only supplier offering the full range of Group I-V base stocks, as well as expand the company’s product offering in Group III base stocks and help it meet North American demand for higher-quality base stocks.
Base stocks are building blocks of lubricants and greases, and are used in a variety of applications such as cars, trucks, industrial machinery, wind turbines, ships and planes.
“We also expect the additional diesel production will meet demand from long-haul transportation, including heavy-duty trucks, both domestically and internationally,” the company said.
Exxon (XOM) has said it expects diesel demand to remain strong, as gasoline consumption declines.