Exxon targets Asia with petrochemical plant expansion

|About: Exxon Mobil Corporation (XOM)|By:, SA News Editor

Exxon Mobil (XOM) is moving to capitalize on growing demand in Asia by announcing the expansion of its chemical production facility in Singapore, where new technology will enable it to process crude oil directly into petrochemical products.

XOM declines to put a price on the facility but industry analysts see the move as an ambitious bet on new technology at a time of industry overcapacity.

Two-thirds of the world's growth in chemical demand will occur in the Asia-Pacific region, CEO Rex Tillerson says.

The new technology used at the facility can take certain kinds of crude oil as feedstock for the cracking process without the need for prior refining, which will lowers feedstock costs, saving energy and reducing emissions.