A new chapter begins as ExxonMobil expands Group III base stock production with Baytown groundbreaking

Across the automotive and industrial sectors, lubricant formulators are facing a shift. Tighter emission standards and evolving engine technologies are accelerating demand for Group III base stocks, while supply chain uncertainty has increased the importance of reliable sources worldwide. Meeting these demands requires more than incremental adjustments. It takes long-term investment, large-scale manufacturing capabilities and a portfolio that can adapt as markets evolve.

That’s why ExxonMobil has decided to expand Group III base stock production at its Baytown, Texas, facility through our Baytown Refinery Expansion Project. Now, with construction underway, ExxonMobil is on track to become the only provider in the world to offer the full range of Group I to V base stocks to customers.

“Breaking ground on this project marks a major step forward in delivering the high-performance Group III base stocks our customers need,” said Basel Al-Aghbar, Vice President of ExxonMobil Basestocks and Waxes. “It reflects our commitment to investing in our base stocks portfolio to provide blending solutions that meet performance requirements today and as they continue to evolve into the future.”

Initially announced late last year, the Baytown expansion is not an isolated investment. It builds on years of work, global execution and a clear view of where the base stock market is headed.

Group III base stocks play an increasingly critical role in modern lubricant formulations, particularly for higher-quality passenger car engine oils and advanced applications across transportation and industrial sectors. From passenger vehicles to agricultural machinery, ships, aircraft and wind turbines, these applications demand base stocks that deliver greater durability, efficiency and consistency.

As regulations tighten and performance expectations rise, lubricant formulations are becoming more complex. Group III base stocks offer the consistency and performance characteristics needed for modern engines and advanced industrial equipment. And for North American customers, access to a reliable, domestic source of these base stocks is becoming increasingly important as global supply chains remain constrained.

The Baytown expansion is designed to help meet these evolving customers’ needs. Once complete, the project will bring our Group III production capacity to around 8,000 barrels per day, providing a reliable domestic source of high-quality base stocks for the North American market. As we expand supply our investment uniquely positions us as the only international oil company to match scale in chemicals, lubricants and fuels.

“Our customers are navigating real performance and supply challenges,” Al-Aghbar said. “Expanding Group III capacity is about helping them meet those demands with confidence.”

Expanding Group III base stock production at Baytown builds on a series of recent ExxonMobil investments aimed at strengthening base stock supply worldwide. These include the Singapore Resid Upgrade Project and the introduction of Group II production at the Rotterdam refinery, both large-scale, multiyear efforts that reflect the complexity and discipline required to deliver advanced base stock capacity.

At Baytown, ExxonMobil will adjust rates and yields across three existing units, shifting some gasoline production towards higher-demand lubricant base stocks and diesel fuel. Construction is on track for a 2028 startup, marking the next phase in ExxonMobil’s long-term manufacturing strategy.

Projects of this scale require years of planning, engineering and execution, as well as the ability to integrate new capabilities into existing, world-class facilities. For ExxonMobil, Baytown represents the continuation of a global approach that prioritizes reliability, scale and long-term customer support.

“As we’ve seen with projects like Singapore and Rotterdam, delivering new base stock capacity takes sustained investment and deep technical expertise,” Al-Aghbar said. “Baytown reflects that same commitment to executing complex projects that support our customers for decades to come.”

ExxonMobil’s relationship with Baytown spans more than a century. Since the facility was first built in 1918, the site has been continuously modernized to meet changing customer needs. The Group III expansion represents the next chapter in that history, bringing Baytown’s capabilities forward to support future demand.

Construction of the project is expected to create more than 1,000 construction jobs and generate significant tax revenue for the local community, supporting the city, county and schools. Beyond its economic impact, the project reinforces Baytown’s role as a cornerstone of ExxonMobil’s global manufacturing network.

With construction underway, North American lubricant suppliers will be able have a significant and reliable local supply of Group III base stocks, all backed by ExxonMobil’s full-spectrum base stock portfolio. By reducing the reliance on imports of base stocks and providing access to high-quality base stocks, we are the one-stop resource for any lubricant makers' base stock needs.

Stay tuned for more updates as work progresses toward the project’s anticipated 2028 startup.

To learn more about ExxonMobil’s Base Stock Slate, visit: https://www.exxonmobil.com/en/basestocks/products