OXEA plans to expand its oxo chemical manufacturing facility in Bay City, Texas. The company, which manufactures oxo chemicals, will expand capacity to increase propionaldehyde production, while fully enabling propanol and butanol capacities.

The expansion will increase production of propionaldehyde, propanol and butanol, while also increasing feedstock availability for OXEA's carboxylic acids portfolio and supporting future growth beyond the planned expansion capacities.

To support the project, OXEA has signed a long-term synthesis gas supply agreement with Air Liquide. Under the agreement, Air Liquide will design, build, and operate a new on-site syngas unit at the Bay City facility, with project completion expected by the end of 2028.

The new syngas unit is designed to recirculate carbon dioxide back into the reactor to optimize syngas composition and production flexibility. Reusing CO₂ within the process is expected to reduce overall carbon emissions and support lower-carbon operations.

With the final investment decision confirmed and the project fully funded, OXEA has entered the execution phase, including detailed engineering, procurement, and construction. Site preparation for the Air Liquide syngas unit is scheduled to begin during the third quarter of 2026.

Expansion strengthens long-term supply platform

In a recent quote, Michael McHenry, CEO, OXEA, said, “This investment demonstrates our shareholders' confidence in our strategy and our unwavering commitment to our customers. We are building a world-class supply platform at Bay City that will serve our markets reliably for decades to come. We are not just expanding capacity; we are strengthening the foundation for OXEA's long-term global leadership in oxo chemicals, and further establishing Bay City as a premier industrial park attracting future investment, strategic partnerships, and economic development for the region."

In a recent quote, Jorge Moshe Castro Roldan, vice president of global procurement and project sponsor, OXEA, said, “Achieving FID is both a strategic investment and a promise. It positions OXEA’s Bay City site as a platform for further expansion and firmly establishes Bay City as a cornerstone of OXEA's global production network. It reinforces our commitment to our customers and positions OXEA as the reliable, long-term supplier of choice in our core markets. At the same time, it advances our vision of Bay City as a growing industrial park, and the broader Bay City community."

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