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ExxonMobil said on Tuesday that it expects a new delayed coker unit at its Antwerp refinery to start operating during the first half of 2018, Reuters reports.

The new unit will enable the 320,000-barrel-per-day refinery to convert heavy, higher-sulphur residual oils into transportation fuel products such as marine gas oil (MGO) and diesel fuel ahead of the expected surge in distillate demand as a result of the upcoming global sulphur cap on marine fuels in January 2020.

Announced in July 2014, the project has cost more than $1 billion, with total investments in the Antwerp refinery totalling more than $2 billion in less than a decade following the completion of a 130-megawatt cogeneration unit and a diesel hydrotreater.

The delayed coker project was announced at a time when the European refining market was facing extremely low margins and industry-wide losses, with ExxonMobil explaining that it was "investing for the long term" in its Antwerp plant.

"This project demonstrates ExxonMobil's long-term view and disciplined approach toward business investments, and is the first of several being evaluated to further strengthen strategic refineries in Europe to more successfully face the challenging industry environment," ExxonMobil said in 2014.

The start-up of the new delayed coker is set to take several months; however, an ExxonMobil spokesperson informed Reuters that the company still expects the unit to be fully operational before the end of June.