Exports Fuel Investment in U.S. Petcoke Expansions, Upgrades

Researched by Industrial Info Resources (Sugar Land, Texas)--The U.S. Energy Information Administration (EIA) recently reported annual production of U.S. petroleum coke (petcoke) remained relatively unchanged from 2014 through 2023, averaging 46 million tons, according to U.S. Census Bureau data. Petcoke, which is extracted from petroleum during the refining process, isn't a popular product in the U.S. due to its high carbon content, but it is popular overseas because of its high heat content and low price. Indeed, almost 90% of the petcoke produced in the U.S. in 2023 was exported. Industrial Info is tracking more than $830 million worth of active and proposed projects for petroleum-coking units across the U.S., the bulk of which are for unit upgrades.

Click on the image at right for a graph detailing active and proposed projects for petroleum-coking units across the U.S., by parent company.

PBF Energy Incorporated (NYSE:PBF) (Parsippany, New Jersey) currently accounts for more investment in petcoke projects than any other parent company, according to Industrial Info's Global Market Intelligence (GMI) Project Database, with a pair of upgrades at its refinery in Torrance, California, slated to kick off in the coming months. PBF plans to replace valves on at least six coke drums in its 25,000-barrel-per-day (BBL/d) Delayed Coker South Unit, as well as replace anchor bolts and a deteriorated unheading platform, among other improvements.

Subscribers to Industrial Info's GMI Petroleum Refining Project and Plant databases can read detailed project reports on the valve replacements and other improvements, and learn more from a detailed plant profile.

California has proven a difficult market for refiners, who have found themselves clashing frequently with Governor Gavin Newsom as residents face the highest retail gasoline prices in the Lower 48 states; for more information, see October 18, 2024, article - California Gas Policy Under Scrutiny after Phillips 66 Closure.

Despite the headwinds in California, PBF Chief Executive Officer Matthew Lucey was optimistic about the global outlook in a recent quarterly earnings-related conference call: "Weak margins and gyrating market conditions experienced recently do not reflect our longer-term view that global refining supply and product demand remain tightly balanced. This tightly balanced system should, over the medium to long term, provide a constructive backdrop for refiners as demand for our products continue to grow globally."

On the opposite U.S. coast, PBF is proposing the restart of a delayed coker unit at its refinery in Paulsboro, New Jersey. The company hopes to replace four coke drums and perform major equipment upgrades to reopen the shuttered unit, which once produced 1,300 tons of petcoke. Subscribers can learn more from a detailed project report and unit profile.

BP plc (NYSE:BP) (London, England) trails only PBF in active petcoke-unit projects, including one recently completed and one under construction: an upgrade to a 102,000-BBL/d delayed coker at its refinery in Whiting, Indiana, and an upgrade to a 55,000-BBL/d delayed coker at its Cherry Point Refinery in Blaine, Washington. BP wants to replace these units' cones, which form their bases. Subscribers can read detailed reports on the Whiting and Cherry Point projects.

Marathon Petroleum Corporation (NYSE:MPC) (Findlay, Ohio), another heavy investor in petcoke projects, is preparing to begin work in first-quarter 2025 on the revamp of a delayed coker unit at its refinery in Robinson, Illinois, which processes 15,000 BBL/d of petroleum resid to produce 900 tons of petcoke. The company plans to replace three coke drums that are approaching their end-of-life stage. Subscribers can learn more from a detailed project report and unit profile.

Subscribers to Industrial Info's GMI Project and Plant databases can click here for a full list of detailed reports for projects mentioned in this article, and click here for a full list of related plant profiles.

Subscribers can click here for a full list of reports for active and proposed projects for petroleum-coking units across the U.S.

Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) platform helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking more than 200,000 current and future projects worth $17.8 trillion (USD).