January 19, 2010 at 3:15 pm #2796
Marathon Completes Garyville Expansion
by Naureen S. Malik Dow Jones Newswires
January 08, 2010
NEW YORK (Dow Jones)
Marathon Oil Corp. (MRO) completed the expansion of its Garyville, La., refinery and the new units are being integrated, a company spokesman said Friday.
“Completed on schedule during the fourth quarter of 2009, the Garyville Major Expansion (GME) units are currently in the process of being fully integrated with the original Garyville refinery operations,” Marathon spokesman Robert Calmus said in an email.
The upgrade will expand the refinery’s capacity to 436,000 barrels a day from 256,000 barrels a day, making it the fourth largest refinery in the U.S. It comes at a time when the U.S. refining industry has seen its margins slammed by high crude oil prices and sharply lower demand due to the recession. Refiners have been scaling back operations, processing crude oil at record-low rates for this time of the year at just under 80% of capacity. Last year, Valero Energy Corp. (VLO)shut down its Delaware City, Del., refinery and idled the one in Aruba while Sunoco Inc. (SUN) idled its Eagle Point refinery in Westville, NJ. Analysts estimate that another one million barrels a day needs to be shut down in the U.S. MO< Per company policy, Marathon’s Calmus declined to comment about the timeline of the integration or what the planned rate will be at Garyville. However, he noted that the company will begin a previously announced turnaround at the refinery in January, which is expected to be complete within the first quarter.
As part of the Marathon upgrade, the company added a new crude unit that can process 180,000 barrels a day, a coker unit with 44,000 barrels a day and a 70,000-barrel-a-day hydrocracker. Other new units include a CCR Platformer Unit, a kerosene hydrotreater, a naphtha hydrotreater, sulfur units and a saturated gas units. The additional production knocks Citgo Petroleum’s nearby refinery in Lake Charles, LA, from the number four spot. Exxon Mobil Corp. (XOM) owns the nation’s two largest refineries, the 572,500-barrel-a-day refinery in Baytown, Texas, and the 503,000-barrel-a-day refinery in Baton Rouge, LA, followed by 455,790-barrel-a-day refinery operated by BP PLC (PLC) in Texas City, TX.
Marathon shares were recently down 2 cents at $32.60. The stock posted 14% gains over the past 12 months.
January 19, 2010 at 3:19 pm #5827
Here is update on Garyville completing (was ~98% at last update in November). The refinery now @ 435MBD is US new #4 largest refinery edging out Citgo LCharles & others….for now (will be more 600MBD expansions completing). The new 44MBD coker now raises total coker charge for both units will be ~82MBD (or estimated 1.7 million mtpy).
Most of previous petcoke production has gone from refinery conveyor loaded barges direct to WKE’s Wabash Petcoke Gasification unit on Mississippi River and some other sales but the volume just doubled. MAP has been a long term petcoke marketer and so even at 6%S most of the petcoke is likely placed rumor for 2010 has 800 kmtpy to FPL Tampa, TECO & Cleco combined.
But the new Garyville capacity now becomes part of the growing overhang of 6%S fuel cokes and the increasing differential between coking production and capacity – which can flood the market whenever utilization rates climb out of the cellar & idled/shutdown/closed coking refineries come back – enough sour crude availability & price returns to even 5 year minimum averages and refinery margins drift back to 5 year minimums as well.
February 4, 2011 at 8:31 pm #5282
Marathon Executive: Garyville, La., Refinery Capacity Could Increase
By Ben Lefebvre, Of Dow Jones NEWSWIRES 2/04/2011
HOUSTON -(Dow Jones)- Marathon Oil Corp. (MRO) has filed an application with the state of Louisiana to further expand the company’s refinery in Garyville after finishing a major expansion in 2009.
“We have filing in there to expand it further if refinery shows it can run above 464,000 barrels a day,” Marathon spokesman Shane Pochard said.
Marathon boosted the Louisiana refinery’s run rate from the 436,000 barrels a day it listed after it finished the multi-billion-dollar expansion in 2009. The initial expansion added another 180,000 barrels a day to its capacity.
“After a year of running, the refinery has been able to process additional crude,” Pochard said.
-By Ben Lefebvre, Dow Jones Newswires; 713-547-9201; email@example.com
February 4, 2011 at 8:32 pm #5281
Here is update on MRO Garyville expansion -Refinery increased from 256MBD (previous sometimes show as 290MBD?) to 436MBD by adding +180MBD with 44MBD coker.
Sounds like after year operating they find project still has some capacity/throughput upside (final might have totaled to 470MBD anyway) over what it permitted. (see completion post coking.com 1/19/2010)
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