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Researched by Industrial Info Resources (Sugar Land, Texas)--Marathon Petroleum Corporation (NYSE:MPC) (Findlay, Ohio) and its spinoff MPLX LP (NYSE:MPLX) (Findlay) saw their gathered, processed and fractionated volumes increase in the fourth quarter, when compared with the same period in 2018. Growth in the Permian Basin and Northeast region are the biggest drivers, and more Marathon projects in those areas are set to begin or wrap up soon. Industrial Info is tracking nearly $8 billion worth of active projects from Marathon Petroleum, including nearly $3 billion worth that are nearing or under construction.
Click on the image at right for a graph detailing Marathon Petroleum's active projects, by type.
Despite the volume growth, Marathon reduced its capital-spending target for full-year 2020 from about $2 billion to $1.5 billion, in part from expectations that commodity prices will weaken. The company's fourth-quarter results included a non-cash impairment charge of about $1.2 billion, related to goodwill from the gathering and processing businesses that Marathon picked up as part of last year's Andeavor acquisition.
Marathon's net income for the quarter stood at $443 million, less than half of fourth-quarter 2018's $951 million; revenues for the past quarter were reported to be $31.38 billion, narrowly down from fourth-quarter 2018's $32.54 billion.
Marathon notched up progress on a $500 million hydrocracker expansion at its Galveston Bay Refinery in Texas City, Texas. The project, which is part of its broader South Texas Asset Repositioning (STAR) program, will reduce sulfur content and expand the unit's capacity from 64,000 to 84,000 barrels per day (BBL/d). The full STAR Project is expected to add 40,000 BBL/d of crude capacity to the Galveston Bay Refinery, currently the second largest in the U.S., by integrating operations from Marathon's former Texas City Refinery. For more information, see Industrial Info's project report.
The hydrocracker expansion at Galveston Bay is expected to wrap up in first-quarter 2022, around the same time Marathon expects to begin construction on an estimated $200 million second train at its Texas City NGL Fractionator complex. The addition would double fractionation capacity for natural gas liquids (NGL) at the facility to 300,000 BBL/d, with feedstock shipped from the Permian Basin. On the opposite side of the Lone Star State, Marathon already is building the estimated $125 million Preakness Natural Gas Processing Plant in Orla, which is expected to process 200 million standard cubic feet per day from the Permian's Delaware Basin. For more information, see Industrial Info's reports on the Texas City and Preakness projects.
Oklahoma's Cana-Woodford Shale is only a fraction of the Permian's size and does not receive anywhere near as much attention as its Texas peer, but is home to a key project from MarkWest Energy Partners LP, a subsidiary of Marathon: the estimated $200 million second train at the Omega Natural Gas Processing Plant in Kingfisher, which began construction in July and is expected to be completed in the second quarter. Train 2 is expected to boost the facility's capacity from 165 million to 285 million standard cubic feet per day. For more information, see Industrial Info's project report.
MarkWest is looking toward the completion of its $150 million Smithburg Cryogenic Natural Gas Processing Complex in New Milton, West Virginia, and already is planning a series of capacity additions for the coming years. The Smithburg complex--which is located near MarkWest's Sherwood complex, the largest cryogenic gas-processing plant in the U.S.--will process 200 million standard cubic feet per day of gas from the Marcellus Shale.
The initial phase of Smithburg would be followed by five additional trains, each with a 200 million-standard-cubic-foot-per-day capacity, with construction kickoffs staggered through mid-2023. As currently envisioned, the full complex would have a capacity of 1.2 billion standard cubic feet per day upon completion in early 2024. For more information, see Industrial Info's project reports on the first, second, third, fourth, fifth and sixth trains.
The Utica Shale, which underlies most of the Marcellus, is fueling two MarkWest projects in Ohio: the proposed, $200 million fifth train at its Seneca Cryogenic Natural Gas Plant Complex in Summerfield, which would expand processing capacity from 800 million to 1 billion cubic feet per day; and the proposed, $200 million fourth train at its cryogenic processing and fractionation plant in Cadiz, which would expand capacity from 525 million to 725 million standard cubic feet per day. Each project remains in its early design phase, with construction unlikely to begin until early 2021. For more information, see Industrial Info's reports on the Seneca and Cadiz projects.
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 graph detailing Marathon Petroleum's active projects, by type.Despite the volume growth, Marathon reduced its capital-spending target for full-year 2020 from about $2 billion to $1.5 billion, in part from expectations that commodity prices will weaken. The company's fourth-quarter results included a non-cash impairment charge of about $1.2 billion, related to goodwill from the gathering and processing businesses that Marathon picked up as part of last year's Andeavor acquisition.
Marathon's net income for the quarter stood at $443 million, less than half of fourth-quarter 2018's $951 million; revenues for the past quarter were reported to be $31.38 billion, narrowly down from fourth-quarter 2018's $32.54 billion.
Marathon notched up progress on a $500 million hydrocracker expansion at its Galveston Bay Refinery in Texas City, Texas. The project, which is part of its broader South Texas Asset Repositioning (STAR) program, will reduce sulfur content and expand the unit's capacity from 64,000 to 84,000 barrels per day (BBL/d). The full STAR Project is expected to add 40,000 BBL/d of crude capacity to the Galveston Bay Refinery, currently the second largest in the U.S., by integrating operations from Marathon's former Texas City Refinery. For more information, see Industrial Info's project report.
The hydrocracker expansion at Galveston Bay is expected to wrap up in first-quarter 2022, around the same time Marathon expects to begin construction on an estimated $200 million second train at its Texas City NGL Fractionator complex. The addition would double fractionation capacity for natural gas liquids (NGL) at the facility to 300,000 BBL/d, with feedstock shipped from the Permian Basin. On the opposite side of the Lone Star State, Marathon already is building the estimated $125 million Preakness Natural Gas Processing Plant in Orla, which is expected to process 200 million standard cubic feet per day from the Permian's Delaware Basin. For more information, see Industrial Info's reports on the Texas City and Preakness projects.
Oklahoma's Cana-Woodford Shale is only a fraction of the Permian's size and does not receive anywhere near as much attention as its Texas peer, but is home to a key project from MarkWest Energy Partners LP, a subsidiary of Marathon: the estimated $200 million second train at the Omega Natural Gas Processing Plant in Kingfisher, which began construction in July and is expected to be completed in the second quarter. Train 2 is expected to boost the facility's capacity from 165 million to 285 million standard cubic feet per day. For more information, see Industrial Info's project report.
MarkWest is looking toward the completion of its $150 million Smithburg Cryogenic Natural Gas Processing Complex in New Milton, West Virginia, and already is planning a series of capacity additions for the coming years. The Smithburg complex--which is located near MarkWest's Sherwood complex, the largest cryogenic gas-processing plant in the U.S.--will process 200 million standard cubic feet per day of gas from the Marcellus Shale.
The initial phase of Smithburg would be followed by five additional trains, each with a 200 million-standard-cubic-foot-per-day capacity, with construction kickoffs staggered through mid-2023. As currently envisioned, the full complex would have a capacity of 1.2 billion standard cubic feet per day upon completion in early 2024. For more information, see Industrial Info's project reports on the first, second, third, fourth, fifth and sixth trains.
The Utica Shale, which underlies most of the Marcellus, is fueling two MarkWest projects in Ohio: the proposed, $200 million fifth train at its Seneca Cryogenic Natural Gas Plant Complex in Summerfield, which would expand processing capacity from 800 million to 1 billion cubic feet per day; and the proposed, $200 million fourth train at its cryogenic processing and fractionation plant in Cadiz, which would expand capacity from 525 million to 725 million standard cubic feet per day. Each project remains in its early design phase, with construction unlikely to begin until early 2021. For more information, see Industrial Info's reports on the Seneca and Cadiz projects.
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/.
