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

Gazprom Neft advances Moscow refinery revamp

07/23/2015 JSC Gazprom Neft has gained final approval from Russian government regulators to begin construction on its long-planned combined oil refinery unit ...

Contract let for Chinese grassroots petrochemical project

07/23/2015 Ningxia Baota Chemical Fiber Co. Ltd. (NBCF), a subsidiary of privatized Ningxia Baota Petrochemical Group Co. Ltd. (NBPG), has let a contract to H...

UAE easing gasoline, diesel price controls

07/22/2015

The United Arab Emirates is moving prices of gasoline and diesel toward deregulation effective Aug. 1.

Joint venture plans grassroots refinery for North Dakota

07/21/2015 Quantum Energy Inc., Tempe, Ariz., said it will form a joint venture with Native Son Holdings LLC (NSH), The Woodlands, Tex., to build North Dakota...

PDVSA plans late-July restart for Amuay refinery’s FCCU

07/20/2015 Repairs remain under way on the fluid catalytic cracking unit (FCCU) at Petroleos de Venezuela SA’s (PDVSA) 645,000-b/d Amuay refinery in northwest...

Unplanned maintenance under way at Venezuelan refinery

07/20/2015 Petroleos de Venezuela SA (PDVSA) said unplanned maintenance to a reformer at its at its 190,000-b/d Puerto La Cruz refinery in eastern Venezuela i...

Russia’s NefteGazIndustriya advances refinery modernization

07/20/2015 NefteGazIndustriya LLC, through a project developer, has let a contract to CB&I, Houston, to provide equipment for work related to the moderniz...

OGJ Newsletter

07/20/2015

International news for oil and gas professionals

Ending crude export ban would help rural US areas, House panel told

07/17/2015 Rural US communities generally have benefited from the nation's crude oil production renaissance, and potentially could be helped more if restricti...
White Papers

2015 Global Engineering Information Management Solutions Competitive Strategy Innovation and Leadership Award

The Frost & Sullivan Best Practices Awards recognise companies in a variety of regional and global...
Sponsored by

Three Tips to Improve Safety in the Oil Field

Working oil fields will always be tough work with inherent risks. There’s no getting around that. Ther...
Sponsored by

Pipeline Integrity: Best Practices to Prevent, Detect, and Mitigate Commodity Releases

Commodity releases can have catastrophic consequences, so ensuring pipeline integrity is crucial for p...
Sponsored by

AVEVA’s Digital Asset Approach - Defining a new era of collaboration in capital projects and asset operations

There is constant, intensive change in the capital projects and asset life cycle management. New chall...
Sponsored by

Transforming the Oil and Gas Industry with EPPM

With budgets in the billions, timelines spanning years, and life cycles extending over decades, oil an...
Sponsored by

Asset Decommissioning in Oil & Gas: Transforming Business

Asset intensive organizations like Oil and Gas have their own industry specific challenges when it com...
Sponsored by

Squeezing the Green: How to Cut Petroleum Downstream Costs and Optimize Processing Efficiencies with Enterprise Project Portfolio Management Solutions

As the downstream petroleum industry grapples with change in every sector and at every level, includin...
Sponsored by

7 Steps to Improve Oil & Gas Asset Decommissioning

Global competition and volatile markets are creating a challenging business climate for project based ...
Sponsored by
Available Webcasts

On Demand

OGJ's Midyear Forecast 2015

Fri, Jul 10, 2015

This webcast is to be presented by OGJ Editor Bob Tippee and Senior Economic Editor Conglin Xu.  They will summarize the Midyear Forecast projections in key categories, note important changes from January’s forecasts, and examine reasons for the adjustments.

register:WEBCAST


Predictive Analytics in your digital oilfield - Optimize Production Yield and Reduce Operational Costs

Tue, Jul 7, 2015

Putting predictive analytics to work in your oilfield can help you anticipate failures, plan and schedule work in advance, eliminate emergency work and catastrophic failures, and at the same time you can optimize working capital and improve resource utilization.  When you apply analytic capabilities to critical production assets it is possible to reduce non-productive time and increase your yield.

Learn how IBM's analytics capabilities can be applied to critical production assets with the goal of reducing non-productive time, increasing yield and reducing operations costs.

register:WEBCAST


Cognitive Solutions for Upstream Oil and Gas

Fri, Jun 12, 2015

The oil & gas sector is under pressure on all sides. Reserves are limited and it’s becoming increasingly expensive to find and extract new resources. Margins are already being squeezed in an industry where one wrong decision can cost millions. Analyzing data used in energy exploration can save millions of dollars as we develop ways to predict where and how to extract the world’s massive energy reserves.

This session with IBM Subject Matter Experts will discuss how IBM Cognitive Solutions contribute to the oil and gas industry using predictive analytics and cognitive computing, as well as real time streaming for exploration and drilling.

register:WEBCAST


The Alternative Fuel Movement: Four Need-to-Know Excise Tax Complexities

Thu, Jun 4, 2015

Discussion on how to approach, and ultimately embrace, the alternative fuel market by pulling back the veil on excise tax complexities. Taxes may be an aggravating part of daily operations, but their accuracy is crucial in your path towards business success.

register:WEBCAST


Emerson Micro Motion Videos

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