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Released August 13, 2019 | SUGAR LAND
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Researched by Industrial Info Resources (Sugar Land, Texas)--Marathon Petroleum Corporation (NYSE:MPC) (Findlay, Ohio) and its publicly traded midstream spinoff MPLX LP (NYSE:MPLX) (Findlay) are hard at work on projects across various sectors of the oil and natural gas industry. Industrial Info is tracking more than $11 billion in projects by the two companies, including refining, pipelines and natural gas processing.
Click on the image at right for a breakdown by industry of active Marathon Petroleum and MPLX projects.
Marathon Petroleum
Among Marathon's largest projects is the South Texas Asset Repositioning (STAR) program at its Galveston Bay and Texas City refineries in Texas, which will integrate the two refineries. Among other things, the project will add 40,000 barrels per day (BBL/d) of crude capacity at the Galveston Bay Refinery. The project kicked off earlier this year and is expected to be completed by early 2022. Fluor Corporation (NYSE:FLR) (Irving, Texas) is providing engineering and procurement. For more information, see Industrial Info's project reports on:
Marathon reported running its refineries at 97% utilization in the second quarter. The company reported second-quarter 2019 net income of $1.1 billion, unchanged from the prior-year quarter.
MPLX
In the second quarter, MPLX completed its acquisition of Andeavor Logistics. In MPLX's conference call, President Michael Hennigan said MPLX's standalone growth capital expenditures (capex) for 2020 were targeted at $2 billion, while Andeavor Logistics' was approximately $600 million. Hennigan said after the merger, 2020 growth capex would probably be less than originally allocated $2.6 billion. "Our focus will be on the highest return projects across the combined portfolio," he said.
Hennigan said that during the quarter, MPLX had made a positive final investment on the Whistler Pipeline, a joint venture project that will carry natural gas from the Permian Basin to southern Texas. In Marathon's conference call, Hennigan said, "We expect the Whistler system to eventually provide low-cost natural gas to our Galveston Bay Refinery. Natural gas is a key input at our refineries, and this project creates a compelling industry solution, as well as lowering the overall cost of our system where we are currently utilizing third-party infrastructure."
The pipeline will carry approximately 2 billion cubic feet per day. Construction is expected to begin in early 2020, for completion by the end of that year. For more information, see Industrial Info's project reports on the northern and southern sections of the pipeline as well as the Pecos lateral.
Hennigan also discussed a proposed natural gas liquids (NGL) pipeline in Texas. He said, "Our NGL pipeline, called BANGL, which stands for Bellevue Alternative for NGLs, continues to gain support. At the same time, we remain disciplined to only move forward when we see the project capable of achieving the return threshold that we set, and we hope to provide an update in the near future." The pipeline, which has an estimated TIV of more than $1 billion, would transport up to 500,000 BBL/d of raw NGLs from the Permian Basin near Orla, Texas, to Sweeny, on the Texas Gulf Coast. For more information, see Industrial Info's project report.
MPLX also is engaged in several natural gas processing projects through its wholly owned subsidiary MarkWest Energy Partners (Denver, Colorado). Among these are the construction of trains 11 and 12 at the company's Sherwood cryogenic natural gas processing plant in West Virginia. Each train will add 200 million cubic feet per day of processing, bringing total plant capacity to 2.6 billion cubic feet per day. Construction on the trains began late last year, and they are expected to wrap up later this year. For more information, see Industrial Info's project reports on Train 12 and Train 13.
MPLX reported second-quarter 2019 net income of $482 million, up from $453 million in second-quarter 2018.
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.
Click on the image at right for a breakdown by industry of active Marathon Petroleum and MPLX projects.Marathon Petroleum
Among Marathon's largest projects is the South Texas Asset Repositioning (STAR) program at its Galveston Bay and Texas City refineries in Texas, which will integrate the two refineries. Among other things, the project will add 40,000 barrels per day (BBL/d) of crude capacity at the Galveston Bay Refinery. The project kicked off earlier this year and is expected to be completed by early 2022. Fluor Corporation (NYSE:FLR) (Irving, Texas) is providing engineering and procurement. For more information, see Industrial Info's project reports on:
- the 40,000-BBL/d crude unit expansion at Galveston Bay
- the 20,000-BBL/d expansion of the residual hydrocracker at Galveston Bay
- the construction of offsite utilities at Galveston Bay
- the addition of 65,000-BBL/d diesel hydrotreater at the Texas City Refinery
Marathon reported running its refineries at 97% utilization in the second quarter. The company reported second-quarter 2019 net income of $1.1 billion, unchanged from the prior-year quarter.
MPLX
In the second quarter, MPLX completed its acquisition of Andeavor Logistics. In MPLX's conference call, President Michael Hennigan said MPLX's standalone growth capital expenditures (capex) for 2020 were targeted at $2 billion, while Andeavor Logistics' was approximately $600 million. Hennigan said after the merger, 2020 growth capex would probably be less than originally allocated $2.6 billion. "Our focus will be on the highest return projects across the combined portfolio," he said.
Hennigan said that during the quarter, MPLX had made a positive final investment on the Whistler Pipeline, a joint venture project that will carry natural gas from the Permian Basin to southern Texas. In Marathon's conference call, Hennigan said, "We expect the Whistler system to eventually provide low-cost natural gas to our Galveston Bay Refinery. Natural gas is a key input at our refineries, and this project creates a compelling industry solution, as well as lowering the overall cost of our system where we are currently utilizing third-party infrastructure."
The pipeline will carry approximately 2 billion cubic feet per day. Construction is expected to begin in early 2020, for completion by the end of that year. For more information, see Industrial Info's project reports on the northern and southern sections of the pipeline as well as the Pecos lateral.
Hennigan also discussed a proposed natural gas liquids (NGL) pipeline in Texas. He said, "Our NGL pipeline, called BANGL, which stands for Bellevue Alternative for NGLs, continues to gain support. At the same time, we remain disciplined to only move forward when we see the project capable of achieving the return threshold that we set, and we hope to provide an update in the near future." The pipeline, which has an estimated TIV of more than $1 billion, would transport up to 500,000 BBL/d of raw NGLs from the Permian Basin near Orla, Texas, to Sweeny, on the Texas Gulf Coast. For more information, see Industrial Info's project report.
MPLX also is engaged in several natural gas processing projects through its wholly owned subsidiary MarkWest Energy Partners (Denver, Colorado). Among these are the construction of trains 11 and 12 at the company's Sherwood cryogenic natural gas processing plant in West Virginia. Each train will add 200 million cubic feet per day of processing, bringing total plant capacity to 2.6 billion cubic feet per day. Construction on the trains began late last year, and they are expected to wrap up later this year. For more information, see Industrial Info's project reports on Train 12 and Train 13.
MPLX reported second-quarter 2019 net income of $482 million, up from $453 million in second-quarter 2018.
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.
