U.S. Refiners Continue Capacity Additions as Utilization Rises

Researched by Industrial Info Resources (Sugar Land, Texas)--The primary measure of U.S. refining capacity increased to 18.4 million barrels per day (BBL/d) at the start of 2024, a 2% increase when compared with the start of 2023, according to the U.S. Energy Information Administration (EIA). This marks the second time capacity grew annually since the COVID-19 pandemic, which the EIA attributed primarily to additions at existing facilities. Industrial Info is tracking more than $3.3 billion worth of active and planned expansion and unit-addition projects at refineries across the U.S., including nine projects--mostly in Texas and Louisiana--set to kick off in the remainder of 2024.

Click on the image at right for a graph detailing the top parent companies for active and planned expansions and additions at refineries across the U.S.

BP plc (NYSE:BP) (London, England) leads among refiners for U.S.-based expansions and additions planned for the coming years, including one set to kick off later this summer: the $30 million addition of a nitrogen unit at its Cherry Point Refinery in Blaine, Washington. Although nitrogen accounts for less than 0.1% of crude oil by weight, it is commonly removed during refining because it can have a harmful effect on the process, according to the American Chemical Society. The new unit will be provided by Linde plc (NYSE:LIN) (Woking, England).

Subscribers to Industrial Info's Global Market Intelligence (GMI) Petroleum Refining Project and Plant databases can learn more from a detailed project report and plant profile.

Flint Hills Resources LLC, a subsidiary of Koch Industries Incorporated (Wichita, Kansas), began the preliminary engineering process earlier this year for its $50 million Mid Crude 4 Unit expansion at the West Plant of its refining complex in Corpus Christi, Texas. The company plans to improve the fractionation capability of the unit's vacuum tower, which it expects to increase the unit's capacity from 197,000 to 217,000 BBL/d.

The expanded unit will be powered partly by a $50 million solar farm Flint Hills plans to add concurrently. Both projects are expected to be completed in the spring of 2025. Subscribers can read detailed reports on the Mid Crude 4 Unit expansion and solar farm.

In one of the busiest places for the Oil & Gas Industry, Valero Energy Corporation (NYSE:VLO) (San Antonio, Texas) is adding a $20 million boiler unit and $10 million of storage tanks at its 235,000-BBL/d Saint Charles Refinery in Norco, Louisiana. The new boiler is designed to keep the refinery operational during startups and shutdowns, while the two new storage tanks, each with a 160,000-barrel capacity, will replace a single tank that was severely damaged during Hurricane Ida in August 2021. Subscribers can read detailed reports on the boiler and storage tanks.

HF Sinclair Corporation (NYSE:DINO) (Dallas, Texas) also is among the refiners adding storage capacity at its facilities. The company is preparing for $8 million in storage tank additions at its complex in Casper, Wyoming, to hold another 100,000 and 25,000 barrels of crude and finished products, respectively; the complex presently holds 160,000 and 75,000 barrels, respectively. Subscribers can learn more from a detailed project report and plant profile.

The need for more U.S. refining capacity is reflected in the growing percentages for average refinery utilization. The EIA noted that while the annual U.S. refinery utilization from 2014 through 2023 has averaged about 89%, it stood at 92% and 91%, respectively, in 2022 and 2023.

"Utilization has been relatively high the last two years as refiners increased operations in response to high petroleum product prices, producing greater quantities of petroleum products such as motor gasoline and diesel," the EIA said in an analysis. "High prices reflected reduced global refinery capacity and changing global petroleum trade flows."

Subscribers to Industrial Info's GMI Project and Plant databases can click here for a full list of detailed reports for projects mentioned in this article, and click here for a full list of related plant profiles.

Subscribers can click here for a full list of reports for active and planned expansion and unit-addition projects at refineries across the U.S.

Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) platform helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking more than 200,000 current and future projects worth $17.8 trillion (USD).