U.S. Refiners Eye $1.3 Billion in Third-Quarter Developments

Researched by Industrial Info Resources (Sugar Land, Texas)--The summer driving season is well underway, and refineries across the U.S. are expanding and tuning up their facilities amid the usual demand surge. Industrial Info is tracking more than $1.3 billion worth of capital and maintenance-related projects at refineries across the U.S. that are set to kick off in the third quarter, with upgrades accounting for the bulk of capital-spending projects.

Click on the image at right for a graph detailing the top 10 parent companies for capital and maintenance-related projects at U.S. refineries scheduled to begin from July through September, by total investment value.

While Exxon Mobil Corporation (Spring, Texas) isn't even in the top five companies for total investment in third-quarter kickoffs, but it accounts for the single highest-valued project: the addition of a waste-recycling unit at its refinery in Beaumont, Texas. It is designed to process up to 80 million pounds per year of plastic waste, with the output used as a blended feedstock for downstream units at the same refinery. The Beaumont project follows ExxonMobil's 2023 completion of a plastic waste-recycling unit at its chemical plant in Baytown, Texas.

Darren Woods, the chief executive officer of ExxonMobil, said in a recent quarterly earnings-related conference call that plastic waste-recycling technology holds promise for the company: "We're starting up our second advanced recycling unit at Baytown, using proprietary technology to recycle plastic waste at a much lower cost than alternative processes. Like our first advanced recycling unit, the [Beaumont] one will have capacity to process 80 million pounds a year for a growing market of certified circular polymers."

Subscribers to Industrial Info's Global Market Intelligence (GMI) Petroleum Refining Project Database can read detailed reports on the upcoming Beaumont and completed Baytown projects.

Marathon Petroleum Corporation (Findlay, Ohio) leads among U.S.-based refiners in its total investment in third-quarter project kickoffs, due largely to a series of projects at its refinery in Canton, Ohio. These projects, none of which are expected to exceed $60 million of investment, could wrap up by the end of the quarter. They include:

• a plant-wide instrumentation and controls upgrade; see project report
• upgrades to the crude and vacuum units; see project report
• a fluid catalytic-cracking unit (FCCU) upgrade; see project report
• upgrades to a pair of cooling towers; see project report
• the addition of an electric substation; see project report

Maryann Mannen, the chief executive officer of Marathon Petroleum, said in a recent earnings call that the company is scheduling more of these lower-cost projects to bolster performance at its key facilities: "We are executing smaller, high-return, quick-hit projects targeted at enhancing refinery yields, improving energy efficiency and lowering our cost, leveraging our fully integrated refining system and geographic diversification."

Ergon Incorporated (Flowood, Mississippi) is preparing for a six-week maintenance program at its refinery in Vicksburg, Mississippi, during which the company also plans to expand its crude and vacuum units, increasing processing capacity by 20%, and to begin work on a renovation of its sulfur recovery unit (SRU), which could run into early 2027.

"No supply interruptions are expected for Ergon's current ratable customers [during the maintenance period], as product inventory levels are sufficient to support sales during the planned outage," Ergon said in a press release earlier this month. Subscribers can read detailed reports on the maintenance, crude and vacuum expansion and SRU renovation.

Altogether, Industrial Info is tracking more than 20 maintenance-related projects at U.S. refineries set to kick off in the third quarter, totaling more than $600 million of investment. Subscribers can click here for a full list of detailed project reports.

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 detailed reports for capital and maintenance-related projects at refineries across the U.S. that are set to kick off in the third quarter.

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).