Exxon Mobil has decided to delay its plan to build a huge new plastics plant in Calhoun County, Texas. The $10 billion project on the Gulf Coast was supposed to start construction next year, but the company says current market conditions have led them to slow things down for now.
The plant was designed to produce up to 3 million tons of polyethylene pellets annually, mostly for export to Asia. Exxon had applied for a 50% property tax cut for ten years, starting in 2031 when the plant would begin operating. But earlier this year, a local judge threw out a school board’s agreement to offer that tax break. This came after Diane Wilson, a 77-year-old environmental activist, filed a lawsuit saying the school district didn’t give proper notice about the tax discussions, seemingly trying to limit public opposition.
Wilson, who has a long history of fighting for Texas coastal bays and won the Goldman Environmental Prize in 2023, believes community pushback played a key role in Exxon’s decision to pause. “If they had everyone on board, there probably wouldn’t be a delay,” she said.
Despite the legal challenges over taxes, some local leaders downplayed their impact on the delay. John Titas, president of the Victoria Economic Development Corporation nearby, said Exxon’s choice is more about economics. “To spend that kind of money, they need to be sure the market will pay off,” Titas explained.
Exxon says it’s keeping a good relationship with local leaders and contractors and may revisit the project when market conditions get better. However, the company didn’t specify what changes they’re waiting for. Experts generally expect strong growth in plastics demand over the next decade. Reports forecast polyethylene markets could grow around 64% between 2024 and 2034, with the overall plastics sector expanding by about half during that time.
Wilson called the delay the best news she’s had since 2019, when she successfully sued another nearby chemical company, resulting in a $100 million settlement and improvements to that plant.
As a retired shrimper and mother of five, Wilson has learned to fight for her community over many years. She wasted no time jumping into action when she heard about Exxon’s latest project. “How a community reacts is so important, especially early on. You have to move fast and keep at it,” she said.
For now, the future of Exxon’s plastics plant in Calhoun County remains uncertain, with the company waiting for the right moment to decide whether to move forward.