ExxonMobil Scraps Plans for $10B Texas Plastics Plant
Houston oil giant Exxon Mobil has abruptly paused plans to build a massive new $10 billion plastics plant along the Texas Gulf Coast, citing "current market conditions" just months before construction was expected to begin.
The energy company confirmed the delay Monday, saying it will "slow the pace" of development for the proposed Coastal Plain Venture in rural Calhoun County. The decision throws uncertainty over one of the largest industrial projects ever proposed for the region—a facility that would have produced up to 3 million tons of polyethylene pellets annually for export, primarily to Asia.
"Based on current market conditions, we are going to slow the pace of our development," Exxon said in an emailed statement. "We remain confident in our long-term growth strategy and continue to explore opportunities along the U.S. Gulf Coast and other regions around the world."
The announcement comes just six weeks after a district court judge struck down a local school board's approval of a lucrative tax break for Exxon, ruling that the Calhoun County Independent School District failed to properly notify the public before its vote. The lawsuit, filed by 77-year-old environmental activist Diane Wilson and her group, San Antonio Bay Estuarine Waterkeeper, forced the district to redo its hearing.
Exxon, which reported nearly $34 billion in profits in 2024, had been seeking a 50 percent property tax reduction over 10 years starting in 2031—the year the facility was projected to begin operations.
Despite the setback, Exxon maintains that the project could be revived. "We're maintaining good relationships with community leaders and contractors so we're ready to reevaluate the project's status when market conditions improve," the company said.
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