Marathon Ashland to upgrade Detroit refinery

Nov. 5, 2003
Findlay, Ohio-based Marathon Ashland Petroleum LLC (MAP) reported Monday that it is planning to obtain financing to fund $300 million in new capital projects to upgrade its 74,000 b/d southwest Detroit refinery. The facility processes both heavy sweet crude and sour crude oil.

By OGJ editors

HOUSTON, Nov. 5 -- Findlay, Ohio-based Marathon Ashland Petroleum LLC (MAP) reported Monday that it is planning to obtain financing to fund $300 million in new capital projects to upgrade its 74,000 b/d southwest Detroit refinery. The facility processes both heavy sweet crude and sour crude oil.

One $110 million expansion project will increase crude oil throughput at the refinery by 35% to 100,000 b/d, the company said. Other projects will enable the refinery to produce new low-sulfur gasoline and ultralow-sulfur diesel fuel.

Construction is expected to begin in early 2004 and to complete in 2005. Chicago Bridge & Iron's process and technology group, CB&I Howe-Baker, The Woodlands, Tex., has been selected to complete a major portion of the project.

"The state of Michigan and city of Detroit officials committed significant financial support to MAP by granting a 'Renaissance Zone' designation for the state's only remaining refinery," said MAP Pres. Gary R. Heminger. "The designation was a pivotal factor in our decision to proceed with these projects."

MAP is 62% owned by Marathon Oil Co.—a wholly owned subsidiary of Marathon Oil Corp.—and is 38% owned by Ashland Inc.