Exxon Mobil Delays $10 Billion Plastics Plant Over Market Concerns
Exxon Mobil has postponed plans for a $10 billion plastics production plant on the Gulf coast due to current world market conditions. This news comes as a relief to environmental activists, who have been opposing the project. The delay follows a recent court ruling that invalidated a local college board's decision to negotiate a tax break agreement with the company.
The plant, initially planned to start construction in 2026 in rural Calhoun County, was set to produce up to 3 million tons per year of polyethylene pellets for export, primarily to Asia. However, Exxon Mobil has now put these plans on hold due to the current stock market today situation.
The company's decision to seek a 50% reduction in property taxes for the project, spanning 10 years starting in 2031, was challenged in court. A county district court judge recently invalidated the local college board's decision to negotiate this tax break agreement. The judge ruled that the college board had provided inadequate notice for the public hearing on the matter.
The delay in the project's timeline is welcomed by Diane Wilson, 77, and her group, San Antonio Bay Estuarine Waterkeeper, who had filed a lawsuit against the college board's decision. Wilson considers this development as the best news she's heard since 2019. Despite the delay, Exxon Mobil, which reported nearly $34 billion in profits in 2024, maintains the option to resume the project when stock market conditions improve. Stock market projections still forecast strong growth in plastics demand over the coming years.
