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Project Approved: OxyChem now approved for a Proposed $1.1 Billion Overhaul and Expansion Project in Deer Park, TX
Overview
OxyChem, a subsidiary of Occidental Petroleum Corporation, has proposed a substantial $1.1 billion project aimed at overhauling and expanding its facility in Deer Park, Texas. The project, designed to bolster the company’s production capabilities and enhance its operational efficiency, reflects OxyChem’s commitment to maintaining a competitive edge in the chemicals industry. This article delves into the specifics of the proposed expansion, its anticipated benefits, and the strategic importance of the project.
Project Details
The proposed project encompasses a comprehensive upgrade and expansion of OxyChem’s existing Battleground site, which spans approximately 197 acres in Harris County. Key improvements include the construction of new facilities for chlorine and caustic soda production, as well as upgrades to existing infrastructure to support these new operations.
Key Components of the Expansion:
- Primary Brine Processing:
- Installation of new machinery and equipment for purifying salt, including large brine storage tanks, chemical addition vessels, polishing filters, heat exchangers, and brine pumps.
- Enhanced instrumentation for monitoring pressure, temperature, and volume, along with electrical supply systems such as motor starters, wires, and cabling.
- Salt Evaporators:
- Addition of five large evaporator bodies supported by a metal structure.
- Intermediate water and brine storage tanks, heat exchangers, and steam vapor ductwork to connect the evaporator bodies.
- Large circulating pumps, collection vessels, and a new ion exchange facility for high-resolution filtering.
- Membrane Cell Unit:
- Construction of a new cell room housing over 3,000 electrolytic cells.
- Installation of copper bus and cables for electricity supply to the cells, along with brine feed piping systems.
- Separate piping systems for hydrogen, caustic, chlorine, and brine products.
- Chlorine Processing Unit:
- New equipment for chlorine purification, including advanced instrumentation and control systems.
- Interconnections and Utilities:
- Tie-ins to existing electrical subyards, brine process units, and utility systems (natural gas, nitrogen, process air, steam, cooling water, etc.).
- New wastewater treatment tanks compliant with Texas Pollutant Discharge Elimination System (TPDES) regulations.
App #1861 – Oxy Vinyls LP – Deer Park ISD – Amendment 2 – 11-07-23 : Via Comptroller Doc
Economic and Environmental Impact
The expansion project is poised to bring significant economic benefits to the Deer Park community and the broader Texas region. By creating new production capacities for chlorine and caustic soda, OxyChem aims to reduce Texas’s dependency on imported chlorine, thereby enhancing the state’s chemical production self-sufficiency. Moreover, the project is expected to generate new jobs, both during the construction phase and within ongoing operations, contributing to local economic growth.
From an environmental perspective, the project incorporates cutting-edge chlor-alkali production technology, which is anticipated to improve operational efficiency and potentially mitigate future regulatory impacts on the chemicals industry. The planned improvements are also expected to ensure the long-term viability of the Deer Park site, securing its role as a critical asset in OxyChem’s production portfolio.
Strategic Importance
The proposed overhaul and expansion project aligns with OxyChem’s strategic objectives of optimizing production processes, increasing capacity, and maintaining regulatory compliance. By investing in state-of-the-art technology and infrastructure, OxyChem not only enhances its competitive position in the market but also prepares for potential future industry regulations.
Additionally, the project’s focus on reducing dependency on imported materials and improving local production capabilities underscores OxyChem’s commitment to supporting the Texas economy and reinforcing the state’s industrial base.
Conclusion
OxyChem’s $1.1 billion proposed overhaul and expansion project at its Deer Park, TX facility represents a significant investment in the future of the company and the local community. With its focus on advanced technology, economic growth, and environmental responsibility, the project is set to be a cornerstone of OxyChem’s operational strategy for years to come.
For further details, refer to the Texas Economic Development Act Agreement documents and related exhibits outlining the specifics of the proposed improvements and their expected impact.
Texas Economic Development Act Agreement. (October 2020). Agreement For Limitation On Appraised Value Of Property For School District Maintenance And Operations Taxes: by and between Deer Park Independent School District and Oxy Vinyls, Lp. (Comptroller Form 50-826). Retrieved from https://assets.comptroller.texas.gov/ch313/1861/1861-deer-oxy-agmt.pdf
Reference Maps, Scope, and Approvals: https://assets.comptroller.texas.gov/ch313/1861/1861-deer-oxy-amendapp1.pdf
