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

Chinese plant commissions propylene unit

01/30/2015 Sanyuan Petrochemical Co. Ltd. (SPCL), a subsidiary of Zhejiang Fuling Holding Group, has commissioned a 450,000-tonne/year propane dehydrogenation...

Shell, Iraq ink deal for petrochemicals complex

01/29/2015 Royal Dutch Shell PLC has entered a preliminary agreement with Iraq to construct an $11-billion grassroots petrochemicals complex in the country’s ...

Citing lower oil prices, Sasol delays Louisiana GTL plant investment

01/28/2015 South Africa’s Sasol Ltd. says it will delay the final investment decision on a large-scale, gas-to-liquids (GTL) plant in Louisiana as part of the...

Trinidad ULSD plant won’t be built in 2015, Petrotrin executive says

01/28/2015 Trinidad and Tobago’s state-owned Petrotrin has announced that its $500 million ultralow-sulfur diesel (ULSD) plant cannot be commissioned because ...

Geismar plant begins first methanol production

01/27/2015 Methanex Corp., Vancouver, BC, has completed the first production of methanol from its newly commissioned 1 million-tonne/year plant in Geismar, La.

ETP, Regency to merge in $18-billion deal

01/26/2015 Energy Transfer Partners LP (ETP) and Regency Energy Partners have agreed to merge in a unit-for-unit transaction, plus a one-time cash payment to ...

Vietnam advances Dung Quat refinery expansion plans

01/26/2015 Binh Son Refining & Petrochemical Co. Ltd. (BSR), a subsidiary of state-owned Vietnam National Oil & Gas Group (PetroVietnam), has unveiled...

Varo Energy plans upgrades for Swiss refinery

01/23/2015 Varo Energy BV, a midstream company owned by The Carlyle Group and Vitol Group, plans to invest more than 50 million Swiss francs ($56 million) thi...

BASF plans capacity expansion at Geismar petrochemicals plant

01/22/2015 BASF Corp., the North American affiliate of BASF SE, Ludwigshafen, Germany, plans to boost production of 1, 4-butanediol (BDO) at its Geismar, La.,...

White Papers

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

The impact of aging infrastructure in process manufacturing industries

Process manufacturing companies in the oil and gas, utilities, chemicals and natural resource industri...
Sponsored by

What is System Level Thermo-Fluid Analysis?

This paper will explain some of the fundamentals of System Level Thermo-Fluid Analysis and demonstrate...

Accurate Thermo-Fluid Simulation in Real Time Environments

The crux of any task undertaken in System Level Thermo-Fluid Analysis is striking a balance between ti...

6 ways for Energy, Chemical and Oil and Gas Companies to Avert the Impending Workforce Crisis

As many as half of the skilled workers in energy, chemical and oil & gas industries are quickly he...
Sponsored by

Available Webcasts



Global LNG: Adjusting to New Realties

When Fri, Mar 20, 2015

Oil & Gas Journal’s March 20, 2015, webcast will look at how global LNG trade will be affected over the next 12-24 months by falling crude oil prices and changing patterns and pressures of demand. Will US LNG production play a role in balancing markets? Or will it add to a growing global oversupply of LNG for markets remote from easier natural gas supply? Will new buyers with marginal credit, smaller requirements, or great need for flexibility begin to look attractive to suppliers? How will high-cost, mega-projects in Australia respond to new construction cost trends?

register:WEBCAST


US Midstream at a Crossroads

When Fri, Mar 6, 2015

Oil & Gas Journal’s Mar. 6, 2015, webcast will focus on US midstream companies at an inflection point in their development in response to more than 6 years shale oil and gas production growth. Major infrastructure—gas plants, gathering systems, and takeaway pipelines—have been built. Major fractionation hubs have expanded. Given the radically changed pricing environment since mid-2014, where do processors go from here? What is the fate of large projects caught in mid-development? How to producers and processors cooperate to ensure a sustainable and profitable future? This event will serve to set the discussion table for the annual GPA Convention in San Antonio, Apr. 13-16, 2015.

This event is sponsored by Leidos Engineering.

register:WEBCAST



On Demand

The Future of US Refining

Fri, Feb 6, 2015

Oil & Gas Journal’s Feb. 6, 2015, webcast will focus on the future of US refining as various forces this year conspire to pull the industry in different directions. Lower oil prices generally reduce feedstock costs, but they have also lowered refiners’ returns, as 2015 begins with refined products priced at lows not seen in years. If lower per-barrel crude prices dampen production of lighter crudes among shale plays, what will happen to refiners’ plans to export more barrels of lighter crudes? And as always, refiners will be affected by government regulations, particularly those that suppress demand, increase costs, or limit access to markets or supply.

register:WEBCAST


Oil & Gas Journal’s Forecast & Review/Worldwide Pipeline Construction 2015

Fri, Jan 30, 2015

The  Forecast & Review/Worldwide Pipeline Construction 2015 Webcast will address Oil & Gas Journal’s outlooks for the oil market and pipeline construction in a year of turbulence. Based on two annual special reports, the webcast will be presented by OGJ Editor Bob Tippee and OGJ Managing Editor-Technology Chris Smith.
The Forecast & Review portion of the webcast will identify forces underlying the collapse in crude oil prices and assess prospects for changes essential to recovery—all in the context of geopolitical pressures buffeting the market.

register:WEBCAST


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