Coronavirus makes Exxon slow Beaumont refinery expansion
The project is now expected to come on-line in 2023
Stocks impacted: Exxon Mobil Corp (XOM)
The top U.S. oil company decided to delay the startup of its Beaumont refinery expansion on the Texas Gulf Coast by a year. In its decision, Exxon cited low demand for petroleum products amid the coronavirus pandemic. COVID-19 caused the company to cut its 2020 capex plans by 30%. The project is now expected to come on-line sometime in 2023, compared with a previous target of 2022. At the same time, Exxon is preparing to restart the sale of its British North Sea assets after months of delay. According to sources, the firm is unlikely to officially launch the sale process if it finds there is insufficient interest. Meanwhile, Vietnam said Exxon Mobil is considering investments in the nation’s power sector, weighing stakes in two power plants and the gas import infrastructure to feed them, as well as in the oil refining sector. Overnight, Exxon stocks plunged nearly 9% amid a sharp sell-off on Wall Street and a massive profit-taking in the oil market.
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