Home › Forums › Coking › News: DCU, Upgrader › 1.Coker (registered users only) › MAP Detroit Refinery & Coker Project delayed
This topic contains 7 replies, has 3 voices, and was last updated by Charles Randall 13 years, 9 months ago.
-
AuthorPosts
-
October 31, 2008 at 10:22 am #3348
Marathon delays $1.9B Detroit refinery expansion
AP -Friday October 31, 2008 7:36 am ETMarathon delays planned $1.9B refinery expansion in Detroit amid lower crude oil prices
DETROIT (AP) — Marathon Oil has delayed a planned $1.9 billion expansion of a gasoline refinery in Detroit amid lower crude oil prices.
The Houston-based oil company says it’s in the process of reevaluating the project construction schedule. Marathon says it’s working on a new timeline and cost estimates.
Marathon Oil Corp. spokeswoman Angelia Graves tells The Detroit News that “market dynamics have changed.”
The project was expected to be finished in 2010, creating up to 135 permanent jobs and hundreds of construction jobs. -
October 31, 2008 at 10:25 am #6490
Here is update on Refinery & Coker projects being delayed -this one is on MAP Detroit Refinery expansion (& Coker addition) delay – it probably means that the Cattlesburg Refinery & Coker project will also be delayed although no notice on this one (yet).
It is l’kely the high price of asphalt ($600/ton+) which impacts coker margins has something to do with postponing this decision as well. Like lot of the bottom barrel products,the asphalt price drop will lag the crude and fuel commodity markets price drop. -
October 31, 2008 at 11:54 am #6488
AnonymousWhat Cattlesburg Refinery & Coker project are you talking about?
-
October 31, 2008 at 4:55 pm #6487
-
November 1, 2008 at 9:50 am #6486
AnonymousTo the best of my knowledge the Cattlesburg Coker project never made it past the conceptual study and the project was awarded to Detroit instead. LRD and MRD were awarded the projects and the remaining refineries are working on environmental projects.
-
November 1, 2008 at 12:25 pm #6485
Don’t get lost in wrong nomenclature here – if Cattlesburg Coker wasn’t past the conceptual / feasibility stage it would not have made it into the MAP Long Range plan PDF that Claus just linked you into.
The Detroit & Garyville projects got fast forwarded ahead of the Cattlesburg since the timing for thier coker projects have more immediate to crude supplies and as in lot refining companies the big sticker shock of 2-3X the project cost made it necessary for nearly all refineries to push timing off on original plans.
There have been no announcements from MAP canceling the Cattlesburg coker & last mention was ~June 2008. But several Asphalt & Bunker market reports concerned about decreasing yield still show it along with other asphalt refineries at risk for reduced production due to coking projects. And it has also been on lot CA Oil Sands coker projections for US new additions since this 2006 LRP from MAP, along with lot other projects that were pushed back (COP Ferndale) like it was and along with lot “stealth” projects that may be able take CA Bitumen crudes without coker projects (MAP Robinson, COP Alliance, ect).
I believe most Coker projects not in EPC stage now will be pushed into the next cycle as margin/coker economics trail off, but there are still a substantial number that will finish up the current 2006-2011 cycle, with 2011 being bridge to the new cycle 2012-2016. This was ~ pattern for the 1999-2004 cycle with 2005 ~ bridge to a new coker 2006 cycle. -
November 1, 2008 at 7:07 pm #6483
AnonymousThis was the latest information I had received when I was researching MRO as an investment. Of course the potential split of upstream and dounstream could change everything.
http://uk.reuters.com/article/oilRpt/idUKN2530030820080115
MARATHON OIL CORP (MRO.N: Quote, Profile, Research)Catlettsburg, KY N/A refinery N/A NOT PURSUED CURRENTLY DUE TO COST -
November 2, 2008 at 3:45 pm #6481
This type of information is ~good for tracking projects & changes to status or timing but shouldn’t be used for research or as confirmation of the project status. These tables are put out by Reuters, Dow & Bloomberg and the data is arranged in several formats for regional views like: this Table Projects, or Table on Maintenance & Project work or Table Construction projects status.
I post a Routine Maintenance & Project status version on Maintenance News blogg. These are put together by journalist / news types and they usually are distilling down 1-2 page news release to couple line items – so oversimplification is part of process. Just because a project has not moved out of planning and into EPC/FEED stage does not mean it has been dropped/canceled or eleminated. Many of cokers now going in have been on Long Term Plans since 1998 in regions like Mexico/Brazil /Canada/India & ect. I find investment types, EPC contractors, project vendors & news reporters are all “NOW” junkies and if it isn’t happening in next 3 years it doesnt count and nothing is further from the truth.
Also take the split of Upstream & Downstream is being talked about by several refineries now – it is a “Stupidity Cycle” that lot integrated companies get pulled into because current group of New Exec’s drink their own koolaide and start believing that profits are really generated mostly from Upstream and forget that it is only the case because the combined profits are taken their to fully utilize the depletion, tax & cost deductions. Whenever companies split & eventually dispose of downstream assets – their profits often drop for both asset groups and the exposure to volatility is amplified becasue they are both new players that are often risk adverse, used to captive consumers & captive supply.
The current cycle of crude supply shortage sets up the false premise that all consumers are in a captive market; but the truth is that most of the large global oil companies have refineies that are complex and utilize heavy & non-conventional crude supplies that cannot be utilized (profitably) by Simple or Cracking refineries and hence have tendcy to oversupply…….watch Venezuela choke on thier heavy crude sales now that the market price has returned to fundamentals & speculation is being driven out of price of all commodities.
-
AuthorPosts
You must be logged in to reply to this topic.