Released January 16, 2020 | SUGAR LAND
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Researched by Industrial Info Resources (Sugar Land, Texas)--U.S. refinery runs (gross inputs to refineries) will rise by 3% from 2019 to a record level of 17.5 million barrels per day (BBL/d) in 2020, as the new marine fuel sulfur limits prompt refiners to increase output, according to the U.S. Energy Information Administration's (EIA) new Short-Term Energy Outlook (STEO).
Industrial Info is tracking more than $5.9 billion worth of U.S. refining projects that have planned kickoffs in 2020.
Click on the image at right for a graph showing U.S. refining kickoff activity for 2020 by market region.
The International Maritime Organization's (IMO) new limits on sulfur content in marine fuel oil "will encourage global refiners to increase refinery runs and maximize upgrading of high-sulfur heavy fuel oil into low-sulfur distillate fuel to create compliant bunker fuels," according to the STEO, which was released on Tuesday. The new IMO regulation, which took effect January 1, lowers the maximum sulfur content from 3.5% of weight to 0.5%. For related information, see December 17, 2018, article - EIA: IMO Marine Fuel Regulations Pose Challenge to Refineries.
The EIA forecasts that U.S. refinery runs will average 93% this year. The EIA added that "one of the most significant effects of the regulation will be on diesel wholesale margins, which will rise from an average of 43 cents per gallon in 2019 to a forecast peak of 53 cents per gallon in March 2020 and an annual average of 50 cents per gallon in 2020."
Of the $5.9 billion in planned U.S. refining project kickoffs for 2020, $3.2 billion is tied to capital projects, and $2.1 billion is maintenance-related.
One of the big-ticket capital projects planned for kickoff this year is Exxon Mobil Corporation's (NYSE:XOM) (ExxonMobil) (Irving, Texas) $400 million outside battery limit (OSBL) expansion at its 366,000-BBL/d refinery in Beaumont, Texas. Part of ExxonMobil's Beaumont Light Atmospheric Distillation Expansion (BLADE) project, the OSBL component includes construction of offsite utilities to support the refinery expansion. KBR Incorporated (NYSE:KBR) (Houston, Texas) is providing engineering, procurement and construction/management (EPC/M) services. Completion is planned for 2022. For more information, see Industrial Info's project report.
In Roxana, Illinois, WRB Refining LP is planning a $100 million upgrade/expansion for the 38,000-BBL/d hydrocracker at its 380,000-BBL/d Wood River Refinery. The project would increase the hydrocracker capacity to 40,000-45,000 BBL/d. Wood Group (Aberdeen, Scotland) is the engineering and procurement provider. For more information, see Industrial Info's project report.
One of the more substantial refinery maintenance projects planned for this year is the $75 million Fluid Catalytic Cracking Unit (FCCU) 500 turnaround at BP Plc's (NYSE:BP) (London, England) Whiting, Indiana, refinery. The maintenance on the 100,000-BBL/d unit is planned to kick off in the third quarter of this year. For more information, see Industrial Info's project report.
In Baytown, Texas, ExxonMobil is working on a $50 million FCCU 3 turnaround at its 584,000-BBL/d refinery, with completion planned for February. For more information, see Industrial info's project report.
The Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, six offices in North America and 12 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities. Follow IIR on: Facebook - Twitter - LinkedIn. For more information on our coverage, send inquiries to info@industrialinfo.com or visit us online at http://www.industrialinfo.com.
Industrial Info is tracking more than $5.9 billion worth of U.S. refining projects that have planned kickoffs in 2020.
The International Maritime Organization's (IMO) new limits on sulfur content in marine fuel oil "will encourage global refiners to increase refinery runs and maximize upgrading of high-sulfur heavy fuel oil into low-sulfur distillate fuel to create compliant bunker fuels," according to the STEO, which was released on Tuesday. The new IMO regulation, which took effect January 1, lowers the maximum sulfur content from 3.5% of weight to 0.5%. For related information, see December 17, 2018, article - EIA: IMO Marine Fuel Regulations Pose Challenge to Refineries.
The EIA forecasts that U.S. refinery runs will average 93% this year. The EIA added that "one of the most significant effects of the regulation will be on diesel wholesale margins, which will rise from an average of 43 cents per gallon in 2019 to a forecast peak of 53 cents per gallon in March 2020 and an annual average of 50 cents per gallon in 2020."
Of the $5.9 billion in planned U.S. refining project kickoffs for 2020, $3.2 billion is tied to capital projects, and $2.1 billion is maintenance-related.
One of the big-ticket capital projects planned for kickoff this year is Exxon Mobil Corporation's (NYSE:XOM) (ExxonMobil) (Irving, Texas) $400 million outside battery limit (OSBL) expansion at its 366,000-BBL/d refinery in Beaumont, Texas. Part of ExxonMobil's Beaumont Light Atmospheric Distillation Expansion (BLADE) project, the OSBL component includes construction of offsite utilities to support the refinery expansion. KBR Incorporated (NYSE:KBR) (Houston, Texas) is providing engineering, procurement and construction/management (EPC/M) services. Completion is planned for 2022. For more information, see Industrial Info's project report.
In Roxana, Illinois, WRB Refining LP is planning a $100 million upgrade/expansion for the 38,000-BBL/d hydrocracker at its 380,000-BBL/d Wood River Refinery. The project would increase the hydrocracker capacity to 40,000-45,000 BBL/d. Wood Group (Aberdeen, Scotland) is the engineering and procurement provider. For more information, see Industrial Info's project report.
One of the more substantial refinery maintenance projects planned for this year is the $75 million Fluid Catalytic Cracking Unit (FCCU) 500 turnaround at BP Plc's (NYSE:BP) (London, England) Whiting, Indiana, refinery. The maintenance on the 100,000-BBL/d unit is planned to kick off in the third quarter of this year. For more information, see Industrial Info's project report.
In Baytown, Texas, ExxonMobil is working on a $50 million FCCU 3 turnaround at its 584,000-BBL/d refinery, with completion planned for February. For more information, see Industrial info's project report.
The Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, six offices in North America and 12 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities. Follow IIR on: Facebook - Twitter - LinkedIn. For more information on our coverage, send inquiries to info@industrialinfo.com or visit us online at http://www.industrialinfo.com.
