December 16, 2009 at 10:42 am #2842
Chevron corporate budget includes Pas refinery project
Friday, December 11, 2009
By HARLAN KIRGAN
PASCAGOULA A $500 million project that would boost the Chevron Pascagoula Refinery’s gasoline production will continue under the company’s spending plan for 2010, which was announced Thursday.
Chevron Corp. announced the $21.6 billion capital and exploratory budget for 2010 that includes the continuous catalyst regeneration project in Pascagoula that was announced in October 2007, said Steve Renfroe, a company spokesman at the Pascagoula refinery.
“That project is currently under construction, and plans are to complete that toward the end of next year,” he said.
A premium base oil facility project, announced in August 2008, remains under consideration, he said.
“Initially we had plans to make a final investment decision this year on that project,” but the company is planning to make a decision in 2010, he said.
“We could begin construction in 2010,” said Renfroe. “We currently have the permits to move forward with that. We are just waiting to make a final investment decision.”
When the base oil facility was announced, company officials said it would be capable of producing 25,000 barrels of base oil a day. The oil is used to produce premium lubricants, such as motor oil, said company officials.
The company has not announced how much it would spend to build the base oil facility.
The continuous catalyst regeneration project would increase gasoline production 10 percent, or a total of 600,000 gallons a day. The project replaces two process units constructed more than 30 years ago, company officials said when it was announced.
The upgrade to the gasoline production includes about 700 construction jobs, said Renfroe. Chevron’s announcement Thursday stated $17.3 billion is budgeted for oil and gas exploration and production projects.
The company budgeted $3.4 billion for its businesses that manufacture, transport and sell its refined products. The 2010 spending budget is a 5 percent decrease from projected 2009 expenditures, the company news release said.
Major exploration includes deepwater Gulf of Mexico projects, Renfroe said. He said Chevron employs about 1,640 people at the Pascagoula plant, which can process up to 330,000 barrels of crude oil a day.
“We are just pleased that the company continues to invest in Pascagoula, and look forward to continued partnership with the community,” he said.
December 16, 2009 at 10:47 am #5886
Here is update on CVX Pascagoula projects and $wise ….. sort-of , because they don’t really give much in specifics on either the new Slurry Hydrocracker commercial plant or whether the coker is going to be expanded or wait on outcome of the new plant.
But the base plant they mention in this report is a premium lube plant 25 MBD which is not the Slurry Hydrocracker plant.
I have heard rumors that the size of the commercial Slurry Hydrocracker plant may either be scaled down or canceled. Either way this would push the coker portion forward with the refinery expansion which could begin construction in 2010.
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