Chevron Plans to Double HHOB Production Capacity in Louisiana

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Researched by Industrialinfo.com (Industrial Information Resources, Incorporated; Houston, Texas). Chevron Oronite Company LLC (Belle Chasse, Louisiana), a division of Chevron Corporation (NYSE:CVX) (Houston, Texas), plans a significant capacity increase of its High High Over Base (HHOB) production unit in Belle Chasse, Louisiana. The unit was constructed in 1998 and produces HHOB sulfonates used in the production of lube oil additives. Over the years, minor modifications and upgrades have been performed on the unit and the upcoming expansion will double the existing capacity from 20,000 metric tons per year to 40,000 metric tons per year. The expansion, estimated at $14 million, will include the installation of multiple heat exchanger additions and replacements, as well as adding tanks, a reactor vessel and a column.

Currently, URS Corporation (NYSE:URS)(San Francisco, California) is performing the design engineering and may work with Chevron Oronite in a joint effort to release equipment bids in early to mid 2006. Engineering and construction for this expansion will take place over the next twelve to eighteen months with a construction completion date estimated for the first quarter of 2007.

Chevorn Oronite is a leading producer of additives for fuels and lubricating oils. The Oak Point Belle Chasse, Louisiana production plant is one of the largest producers of high quality blended fuel and lubricant additives in the world. This plant is located just south of New Orleans and escaped major damage of hurricane Katrina this past summer.

This plant has been around since 1942 and was designed to produce diesel fuel additives during World War II to extend the range of United States submarines. Today, the plant produces over 30 unique additive components and intermediates in order to comply with the incredible demand for petroleum additives for various engine types.

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