IRVING, Texas: ExxonMobil Oil Corp. has dealt a severe blow to the refinery conversion project along Rosedale Highway by taking steps to invalidate its earlier agreement to purchase renewable Diesel from the incomplete plant. The project is already running a year behind the schedule and exceeding the budget by hundreds of millions of dollars. Refinery owner Global Clean Energy Holdings Inc. has contested the termination notice and demanded an extension until at least November 30th, citing unforeseeable circumstances like the COVID-19 pandemic that have hindered progress.

Global, based in Long Beach, plans to defend the product off-take agreement at the center of its dispute through arbitration. This agreement is considered a crucial asset for the plant, although it remains uncertain if Global could easily negotiate a new contract with another buyer due to prior project complications. The company stated on Tuesday that safety of workers and operational integrity are their top concerns as they continue to concentrate on bringing their product to market.

Global, the company that paid $40 million for the 65,000-barrel-per-day refinery in 2020, has been working on retooling a portion of the property to process used cooking oil, animal fats, and camelina, a type of crop. Previously owned by Shell USA Inc. and known as the Big West refinery, the plant has been inactive for 12 consecutive months since 2012. However, under the leadership of Global, it is expected to become California's largest renewable Diesel refinery and contribute to the promising local sector as the Newsom administration aims to phase out in-state oil and gas production.