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ExxonMobil affiliate Esso Norge AS has announced that it plans to install a new processing unit at its refinery in Slagen, Norway, to enable production of high quality vacuum gas oil, a higher-yield feedstock used to create finished products such as diesel.

The new residual flash tower is an upgrading unit that will improve the facility’s overall crude distillation process by replacing production of heavy fuel oil with lighter, higher-value gas oil, ExxonMobil said.

"The new investment in Slagen builds upon other strategic investments in Europe and further strengthens the industry-leading position of our advantaged assets in meeting increasing demand for energy," commented Jerry Wascom, president of ExxonMobil Refining and Supply Company. "This project, coupled with a recently announced major upgrade at our Antwerp facility, will further strengthen ExxonMobil’s integrated downstream portfolio in Europe to better compete in the challenging environment our industry currently faces."

ExxonMobil says it is investing for the future in its Slagen refinery despite low margins and industry-wide losses in Europe.

"This project demonstrates ExxonMobil's long-term view, with strategic investments in advantaged refineries to more successfully face the challenging industry environment. The company is evaluating investments in other advantaged assets in its global refining network," the company said.

"ExxonMobil continues to optimize its world-class refining assets through strategic investments in assets with advantages over our competition," said Stephen Hart, regional director of ExxonMobil Refining and Supply Company. "The new processing unit at Slagen refinery supports the company’s position as a leader in the global energy market by improving the production slate at the Slagen refinery. The new unit will enable improvement in the product yield in a highly energy-efficient manner that will help further strengthen the industry-leading position of our assets."

Commenting on the Slagen facility's energy efficiency, ExxonMobil said: "International comparisons show that the Slagen refinery is one of the most energy-efficient refineries in the world. Since the early 1990s, the refinery has implemented internal measures to save energy, and it is 25 percent more energy efficient today than it was in 1990."