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Released February 03, 2022 | SUGAR LAND
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Researched by Industrial Info Resources (Sugar Land, Texas)--Marathon Petroleum Corporation's (NYSE:MPC) (Findlay, Ohio) fortunes are rising along with global demand for refined products. Along with Phillips 66 (NYSE:PSX) (Houston, Texas), Valero Energy Corporation (NYSE:VLO) (San Antonio, Texas) and other industry titans, Marathon notched up significant growth in utilization and throughput during 2021, following a year of demand destruction that left the industry questioning its future. Industrial Info is tracking more than $7.75 billion in active projects from Marathon Petroleum, including more than $1.8 billion worth under construction.
Click on the image at right for a graph detailing Marathon Petroleum's active projects, by industry sector.
Marathon reported $774 million of net income for fourth-quarter 2021, compared with $285 million for fourth-quarter 2020. For the full year, net income totaled $9.74 billion, compared with a net loss of $9.83 billion in 2020. The surge in fuel demand following the lifting of COVID-related lockdowns in early-to-mid-2021 accounted for much of the dramatic turnaround. But in their quarterly earnings report, executives seemed more interested in pointing to some of Marathon's incursions into the renewable fuels market: The company started up its renewable diesel project at its former refinery in Dickinson, North Dakota, which is producing 12,000 barrels per day (BBL/d) of diesel derived from vegetable oils.
The success of the Dickinson project is fueling hopes for Marathon's next major undertaking in the renewables market: the $12 billion conversion of its Martinez Refinery near San Francisco, California, which kicked off in December. Marathon initially plans to process 17,000 BBL/d, or 260 million gallons per year, of bio-based feedstocks such as animal fats, soybean oil and corn oil, into a renewable diesel. Following the completion of two additional phases by the end of 2023, Marathon expects the facility will be able to produce about 48,000 BBL/d.
Subscribers to Industrial Info's Global Market Intelligence (GMI) Alternative Fuels Project Database can click here for a list of projects related to the Dickinson facility, and read detailed project reports on the initial phase and follow-up phases for Martinez.
Executives said about $300 million already has been spent on the Martinez project, with about $700 million slated to be spent in 2022, and $200 million in 2023. The amount to be spent this year accounts for more than half of Marathon's overall 2022 growth-capital budget: The company's capital spending outlook for 2022 totals about $1.7 billion, about 80% of which is attributed to growth capital and about 20% to sustaining capital. Capital spending for 2021 totaled about $1.99 billion.
In regards to traditional petroleum refining, Chief Executive Officer Michael Hennigan said during an earnings-related conference call with analysts that light crude oil inventories "remain tight," positioning Marathon for strong margins throughout 2022. Tight supplies already had affected Marathon's operations by the fourth quarter of 2021, when crude capacity utilization was reported at 94%, compared with 82% utilization in the same period of 2020; that resulted in 2.9 million BBL/d of throughput in fourth-quarter 2021, compared with 2.5 million BBL/d in fourth-quarter 2020.
Executives expect a throughput of 2.9 million BBL/d for the current quarter, Hennigan said during the conference call.
Marathon's highest-profile refining projects include the South Texas Asset Repositioning (STAR) program at its Galveston Bay and Texas City refineries, on the Texas Gulf Coast, where the company is expanding capacity and streamlining operations through a series of projects that kicked off in mid-2019. The Galveston Bay Refinery is undergoing a $500 million crude unit expansion, from 437,000 to 477,000 BBL/d; a $500 million hydrocracker unit expansion, from 64,000 to 84,000 BBL/d; and $500 million in offsite utility additions. The Texas City Refinery is undergoing a $200 million hydrocracker unit addition.
Subscribers can read detailed project reports on the crude unit expansion, hydrocracker unit expansion and offsite additions at Galveston Bay, and the hydrotreater unit addition at Texas City.
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.
Click on the image at right for a graph detailing Marathon Petroleum's active projects, by industry sector.Marathon reported $774 million of net income for fourth-quarter 2021, compared with $285 million for fourth-quarter 2020. For the full year, net income totaled $9.74 billion, compared with a net loss of $9.83 billion in 2020. The surge in fuel demand following the lifting of COVID-related lockdowns in early-to-mid-2021 accounted for much of the dramatic turnaround. But in their quarterly earnings report, executives seemed more interested in pointing to some of Marathon's incursions into the renewable fuels market: The company started up its renewable diesel project at its former refinery in Dickinson, North Dakota, which is producing 12,000 barrels per day (BBL/d) of diesel derived from vegetable oils.
The success of the Dickinson project is fueling hopes for Marathon's next major undertaking in the renewables market: the $12 billion conversion of its Martinez Refinery near San Francisco, California, which kicked off in December. Marathon initially plans to process 17,000 BBL/d, or 260 million gallons per year, of bio-based feedstocks such as animal fats, soybean oil and corn oil, into a renewable diesel. Following the completion of two additional phases by the end of 2023, Marathon expects the facility will be able to produce about 48,000 BBL/d.
Subscribers to Industrial Info's Global Market Intelligence (GMI) Alternative Fuels Project Database can click here for a list of projects related to the Dickinson facility, and read detailed project reports on the initial phase and follow-up phases for Martinez.
Executives said about $300 million already has been spent on the Martinez project, with about $700 million slated to be spent in 2022, and $200 million in 2023. The amount to be spent this year accounts for more than half of Marathon's overall 2022 growth-capital budget: The company's capital spending outlook for 2022 totals about $1.7 billion, about 80% of which is attributed to growth capital and about 20% to sustaining capital. Capital spending for 2021 totaled about $1.99 billion.
In regards to traditional petroleum refining, Chief Executive Officer Michael Hennigan said during an earnings-related conference call with analysts that light crude oil inventories "remain tight," positioning Marathon for strong margins throughout 2022. Tight supplies already had affected Marathon's operations by the fourth quarter of 2021, when crude capacity utilization was reported at 94%, compared with 82% utilization in the same period of 2020; that resulted in 2.9 million BBL/d of throughput in fourth-quarter 2021, compared with 2.5 million BBL/d in fourth-quarter 2020.
Executives expect a throughput of 2.9 million BBL/d for the current quarter, Hennigan said during the conference call.
Marathon's highest-profile refining projects include the South Texas Asset Repositioning (STAR) program at its Galveston Bay and Texas City refineries, on the Texas Gulf Coast, where the company is expanding capacity and streamlining operations through a series of projects that kicked off in mid-2019. The Galveston Bay Refinery is undergoing a $500 million crude unit expansion, from 437,000 to 477,000 BBL/d; a $500 million hydrocracker unit expansion, from 64,000 to 84,000 BBL/d; and $500 million in offsite utility additions. The Texas City Refinery is undergoing a $200 million hydrocracker unit addition.
Subscribers can read detailed project reports on the crude unit expansion, hydrocracker unit expansion and offsite additions at Galveston Bay, and the hydrotreater unit addition at Texas City.
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.
