Marathon Petroleum Corp. has canceled a major upgrade of its 522,000-b/d Garyville, La., refinery (OGJ Online, Apr. 24, 2014).
The company referred to what would have been a $2.2-2.5-billion project as ROUX, for “residual oil upgrade expansion.”
Marathon Petroleum Pres. and Chief Executive Officer Gary R. Heminger cited “market conditions.”
The company took a $144 million charge against third-quarter earnings to account for capitalized costs, including front-end engineering and long lead-time equipment.
It reported earnings of $948 million for the third quarter, compared with $672 million in the third quarter of 2014.
