Marathon proposes expansion at Garyville refinery

Marathon Petroleum Corp. is taking the next step toward construction of a proposed $2.2-2.5 billion upgrade to its 522,000-b/d Garyville, La., refinery.

The company plans to file permit applications for the potential project with Louisiana’s Department of Environmental Quality (DEQ) by the end of April, according to a release from the Louisiana Economic Development (LED).

After completing feasibility studies, Marathon expects to make a final decision on the project by early 2015, LED said.

If approved, the project would result in hydrotreating, hydrocracking, and desulfurization equipment installations, along with additional infrastructure that would include buildings, tanks, cooling towers, and rail and electrical installations.

Described by Marathon as a residual oil upgrade expansion, or ROUX, the capital investment would enable the Garyville facility to convert heavy residual oil into about 1.2 million gpd of ultralow-sulfur diesel, according to LED.

While Marathon has only briefly referred to the project in recent presentations to its investors, Rich Bedell, senior vice-president for refining, said the company already has been working with the state and local officials on various milestones for the expansion, according to LED’s release.

If approved, construction would begin mid-2015 and be completed in 2018, Bedell said.

To date, Marathon has sanctioned $130 million for front-end engineering and design, according to a late-March company presentation.

The ROUX project would follow Marathon’s $3.9 billion refinery expansion in Garyville, which represented one of the largest manufacturing projects in Louisiana history upon its completion in late 2009 (OGJ Online, Mar. 31, 2010; Dec. 21, 2009).

If Marathon proceeds with the project, LED said it would offer a customized incentive package to the company, including a performance-based Modernization Tax Credit of $3 million, along with state workforce training program services.

Marathon also would be eligible for the state’s Quality Jobs and Industrial Tax Exemption programs, LED added.

Since commissioning of the 2009 expansion, Garyville has more than doubled its refining capacity to become the third-largest refinery in the US as well as Louisiana’s largest (OGJ Online, Dec. 3, 2012).

Contact Robert Brelsford at rbrelsford@ogjonline.com.

Related Articles

INTERNATIONAL BRIEFS

01/01/1990 WESTCOAST ENERGY INC., Vancouver, B.C., agreed to buy the utilities and propane business of Inter-City Gas Corp. (ICG), Winnipeg, Man., for $720 mi...

HOW INDEXES HAVE RISEN

01/01/1990 Continuing a trend starting in 1983, the Nelson-Farrar refinery construction index rose slowly, from 1106.2 in January 1987, to 1184.1 in December ...

OGJ NEWSLETTER

01/01/1990 Will oil price stability dominate the 1990s? Analyst Philip Verleger thinks so. Using a measure of market concentration the U.S. government uses t...

DOE PRESSES CLEAN COAL PROGRAM

01/01/1990 The U.S. Department of Energy has chosen 13 more clean coal technology (CCT) projects in its third round of competition. If private sponsors and DO...

Careers at TOTAL

Careers at TOTAL - Videos

More than 600 job openings are now online, watch videos and learn more!

 

Click Here to Watch

Other Oil & Gas Industry Jobs

Search More Job Listings >>
Stay Connected