Marathon Petroleum Picks Fluor for Texas Refineries Reconfiguration

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Researched by Industrial Info Resources (Sugar Land, Texas)--Fluor Corporation (NYSE:FLR) (Irving, Texas) has been picked by Marathon Petroleum Corporation (NYSE:MPC) (MPC) (Findlay, Ohio) to execute engineering and procurement for a major reconfiguration of Marathon's Galveston Bay and Texas City refineries in Texas, the engineering firm announced this week.

"Having previously executed the initial studies and early engineering for these projects, we are proud to progress them through the engineering and procurement phase," said Mark Fields, president of Fluor's Energy & Chemicals business in the Americas. The reconfiguration will create a more efficient operation, allowing the refineries to achieve updated U.S. Environmental Protection Agency Tier 3 gasoline sulfur standards, Fluor said in a press statement. The scope includes a new unit, modernization of several existing units and modifications to the utilities and offsites to support the scheduled process changes and refinery connections.

Industrial Info is tracking two planned Marathon Petroleum Tier 3-related projects at Texas City and Galveston. At the 86,000-barrel-per-day Texas City refinery, Marathon and Flour are performing preliminary design for a naphtha hydrotreater unit addition, with a total investment value of $100 million. Downstream of the existing 105,000 barrel-per-day cat feed hydrotreater, the naphtha hydrotreater will reduce sulfur content in gasoline fuels to meet Tier 3 regulations. Construction is expected to begin in early 2018, with completion in first-quarter 2020. For more information on this project, see Industrial Info's project report.

At the 450,000-barrel-per-day Galveston Bay refinery, Marathon is planning a $20 million gasoline hydrotreater unit upgrade. It involves enhancing the existing 105,000 barrel-per-day cat feed hydrotreater by adding a new reactor to reduce sulfur content to meet Tier 3 specifications. Construction kickoff is expected in the first quarter of 2018, with completion in first quarter 2020. For more information, see Industrial Info's project report.

Fluor is also performing the front-end engineering and design work for Marathon's South Texas Asset Repositioning (STAR) program. The STAR program will fully integrate Marathon's Galveston Bay and Texas City refineries, increase the overall crude processing capacity, increase distillate and gas oil recovery and improve the refinery's reliability, according to the company. Industrial Info is tracking $1.5 billion in active projects related to the STAR program. For more information, see Industrial Info's project reports 300260505, 300260518 and 300347357.

Marathon Petroleum is planning $1.7 billion this year in capital expenditures, up from $1.4 billion in 2016. For more information, see February 2, 2017, article - Marathon Petroleum Raises Earnings, Lifts Capital Expenditures.

Industrial Info is tracking 26 U.S. refinery projects that involve Fluor. For related information, see February 20, 2017, article - Fluor Upbeat About Future Global Project Activity.

Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, five offices in North America and 10 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/.