ExxonMobil to build UK Fawley refinery hydrotreater

ExxonMobil has made a final investment decision on a $1bn project to boost ultra low-sulphur diesel (ULSD) output at its 270,000 b/d Fawley refinery in the UK.

The project includes a new hydrotreater to remove sulphur from fuels. It will increase ULSD output by almost 45pc, or 38,000 b/d, ExxonMobil said. Construction will begin in late 2019 and the hydrotreater is expected to start operations in 2021. The project will help reduce the UK's diesel import requirements, according to ExxonMobil.

The decision to upgrade Fawley comes ahead of the International Maritime Organisation's (IMO) sulphur cap for marine fuels in 2020. The new rules will limit the sulphur content of shipping fuels globally to 0.5pc from 3.5pc today.

The sulphur cap is expected to support prices of middle distillates, as marine gasoil (MGO) could replace high-sulphur fuel oil (HSFO) as the main shipping fuel in early 2020.

ExxonMobil has been one of the most proactive refiners in preparing for the sulphur cap. The company will supply compliant marine fuels at major ports ahead of the IMO cap. And it started up a 50,000 b/d delayed coker unit at its 310,000 b/d Antwerp refinery in October last year. This has reduced the refinery's fuel oil output by 200,000 t/month and increased production of diesel, MGO and other transportation fuels.