Reports related to this article:
Project(s): View 9 related projects in PECWeb
Plant(s): View 7 related plants in PECWeb
Released February 03, 2021 | SUGAR LAND
en
Researched by Industrial Info Resources (Sugar Land, Texas)--Marathon Petroleum Corporation (NYSE:MPC) (MPC) (Findlay, Ohio) sees a light at the end of the pandemic tunnel, as the refining giant pointed to improved market conditions in fourth-quarter 2020, when a slight recovery in fuel demand narrowed its quarter-over-quarter net loss. Still, MPC and MPLX LP (NYSE:MPLX), a master limited partnership that focuses on midstream and processing, have reduced their capital-spending outlooks for 2021. Industrial Info is tracking more than $15.4 billion in related projects worldwide, including about $2.2 billion worth under construction in the U.S.
Demand for refined products inched up in the fourth quarter after many U.S. states eased pandemic-related restrictions on movement and many drivers returned to the road. Whether these improved conditions will continue to benefit the refining market is debatable, however, given renewed calls for restrictions after new and deadlier strains of COVID-19 began to appear across the country. MPC executives hope vaccine rollouts will mitigate any fresh concerns.
MPC projects it will spend $1.4 billion on capital projects in 2021, down from $1.75 in 2020. About $450 million is slated for ongoing growth projects and $350 million for renewables, which is notably different from 2020's $644 million and $283 million in ongoing and renewable projects, respectively. Spending on midstream projects accounts for only $50 million, compared with $221 million in 2020.
Click on the image at right for a map of MPC and MPLX's projects on the Texas Gulf Coast.
The company continues to make progress on one of its biggest active endeavors, the South Texas Asset Repositioning (STAR) program at the Galveston Bay and Texas City refineries, on the Texas Gulf Coast. As part of a massive, multi-phase project running from 2019 to 2022, MPC and its engineering, procurement and construction (EPC) contractor Fluor Corporation (NSYE:FLR) (Irving, Texas) are expanding and streamlining capacity at two of its busiest facilities. The projects, which are slated to wrap up toward the beginning of 2022, include:
MPLX LP owns and operates midstream energy infrastructure, and owns crude oil and natural gas gathering systems and pipelines, as well as natural gas processing and fractionation facilities, in major U.S. supply basins such as the Permian, Marcellus and Utica. The main segment of the Wink-to-Webster crude oil pipeline, in which MPLX has an equity interest, finished construction in November and began transporting 1 million BBL/d from the Permian to destinations in the Houston market, including MPC's Galveston Bay refinery. All of its contractable capacity has been secured under long-term commitments from shippers.
Additional segments on the Wink-to-Webster line are expected to be placed in service throughout 2021. These include a $45 million crude oil pump station near Columbus, Texas. For more information, see Industrial Info's project reports on the mainline and pump station.
MPLX's gas-processed volumes in 2020 stood at 8.63 billion standard cubic feet per day, a 1% decrease from 2019, as its Southwest operations (which includes the Permian Basin in Texas) fell 6%. The Marcellus and Utica operations, however, grew 2%.
MarkWest Energy Partners LP, a subsidiary of MPLX, is at work on two major gas-processing projects in Texas: the $200 million second train at the Tornado Natural Gas Processing Plant in Mentone and the $125 million Preakness Natural Gas Processing Plant in Orla, each of which is expected to process 200 million standard cubic feet per day from the Permian's Delaware Basin. The Tornado expansion will double the facility's production to 400 million standard cubic feet per day. For more information, see Industrial Info's reports on the Tornado and Preakness projects.
MarkWest also is nearing completion on its $150 million Smithburg Cryogenic Natural Gas Processing Complex in New Milton, West Virginia, which will process 200 million standard cubic feet per day of gas from the Marcellus Shale. The facility is located near MarkWest's Sherwood complex, the largest cryogenic gas-processing plant in the U.S. For more information, see Industrial Info's project report.
MPLX reduced its 2021 capital expenditure outlook to $800 million, from its $900 million projection at the end of third-quarter 2020.
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.
Demand for refined products inched up in the fourth quarter after many U.S. states eased pandemic-related restrictions on movement and many drivers returned to the road. Whether these improved conditions will continue to benefit the refining market is debatable, however, given renewed calls for restrictions after new and deadlier strains of COVID-19 began to appear across the country. MPC executives hope vaccine rollouts will mitigate any fresh concerns.
MPC projects it will spend $1.4 billion on capital projects in 2021, down from $1.75 in 2020. About $450 million is slated for ongoing growth projects and $350 million for renewables, which is notably different from 2020's $644 million and $283 million in ongoing and renewable projects, respectively. Spending on midstream projects accounts for only $50 million, compared with $221 million in 2020.
Click on the image at right for a map of MPC and MPLX's projects on the Texas Gulf Coast.The company continues to make progress on one of its biggest active endeavors, the South Texas Asset Repositioning (STAR) program at the Galveston Bay and Texas City refineries, on the Texas Gulf Coast. As part of a massive, multi-phase project running from 2019 to 2022, MPC and its engineering, procurement and construction (EPC) contractor Fluor Corporation (NSYE:FLR) (Irving, Texas) are expanding and streamlining capacity at two of its busiest facilities. The projects, which are slated to wrap up toward the beginning of 2022, include:
- a $500 million crude unit expansion at the Galveston Bay Refinery, from 437,000 barrels per day (BBL/d) to 477,000 BBL/d; see project report
- a $500 million hydrocracker unit expansion at the Galveston Bay Refinery, from 64,000 BBL/d to 84,000 BBL/d; see project report
- a $500 million addition of offsite utility facilities for the Galveston Bay Refinery, to accommodate the crude and hydrocracker expansions; see project report
- a $200 million hydrocracker unit addition at the Texas City Refinery, to produce 65,000 BBL/d of ultra-low-sulfur diesel; see project report
MPLX LP owns and operates midstream energy infrastructure, and owns crude oil and natural gas gathering systems and pipelines, as well as natural gas processing and fractionation facilities, in major U.S. supply basins such as the Permian, Marcellus and Utica. The main segment of the Wink-to-Webster crude oil pipeline, in which MPLX has an equity interest, finished construction in November and began transporting 1 million BBL/d from the Permian to destinations in the Houston market, including MPC's Galveston Bay refinery. All of its contractable capacity has been secured under long-term commitments from shippers.
Additional segments on the Wink-to-Webster line are expected to be placed in service throughout 2021. These include a $45 million crude oil pump station near Columbus, Texas. For more information, see Industrial Info's project reports on the mainline and pump station.
MPLX's gas-processed volumes in 2020 stood at 8.63 billion standard cubic feet per day, a 1% decrease from 2019, as its Southwest operations (which includes the Permian Basin in Texas) fell 6%. The Marcellus and Utica operations, however, grew 2%.
MarkWest Energy Partners LP, a subsidiary of MPLX, is at work on two major gas-processing projects in Texas: the $200 million second train at the Tornado Natural Gas Processing Plant in Mentone and the $125 million Preakness Natural Gas Processing Plant in Orla, each of which is expected to process 200 million standard cubic feet per day from the Permian's Delaware Basin. The Tornado expansion will double the facility's production to 400 million standard cubic feet per day. For more information, see Industrial Info's reports on the Tornado and Preakness projects.
MarkWest also is nearing completion on its $150 million Smithburg Cryogenic Natural Gas Processing Complex in New Milton, West Virginia, which will process 200 million standard cubic feet per day of gas from the Marcellus Shale. The facility is located near MarkWest's Sherwood complex, the largest cryogenic gas-processing plant in the U.S. For more information, see Industrial Info's project report.
MPLX reduced its 2021 capital expenditure outlook to $800 million, from its $900 million projection at the end of third-quarter 2020.
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.
