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Researched by Industrial Info Resources (Sugar Land, Texas)--The U.S. Petroleum Refining Industry is in the middle of its heaviest maintenance season since before the COVID-19 pandemic, according to Bloomberg, but the work won't be over in December. Industrial Info is tracking more than $800 million worth of maintenance-related projects at U.S. refineries that are set to kick off in first-quarter 2024, more than half of which is attributed to CVR Energy Incorporated (NYSE:CVR) (Sugar Land, Texas) and Marathon Petroleum Corporation (NYSE:MPC) (Findlay, Ohio).
Click on the image at right for a graph detailing the top 10 parent companies for maintenance-related projects at U.S. refineries that are set to begin from January through March.
CVR's two largest facilities are preparing for major turnarounds that will support planned capacity additions in the coming years. Its refinery in Coffeyville, Kansas, which is its largest by capacity, is preparing for regular inspections and repairs to its major components, including two crude units, two vacuum units and a fluid catalytic cracking unit (FCCU), among others. CVR aims to develop its renewable product output, particularly for sustainable aviation fuel, and believes Coffeyville's location in the heart of the agricultural belt gives it a strategic advantage. Subscribers to Industrial Info's Global Market Intelligence (GMI) Petroleum Refining Project Database can learn more from a detailed project report.
"Although U.S. refining product demand is down in general, gasoline inventories are roughly in line with five-year averages and distillate inventories are more than 12% below the five-year average," said Dave Lamp, the chief executive officer of CVR, in a recent earnings-related conference call. "Reduced refining capacity in the United States, ongoing turnaround activity and a string of unplanned outages during 2023 have all helped keep refined product inventories in check. Exports of gasoline and diesel have also continued to be strong, consistently averaging over 2 million barrels per day so far in 2023."
CVR also is preparing for a series of turnarounds at its refinery in Wynnewood, Oklahoma, which is about 100 miles south of Cushing, Oklahoma, the "Pipeline Capitol of the World." Among them is a series of inspections and repairs to the diesel hydrotreater unit, which will support a planned debottlenecking of the unit that will expand capacity from 20,000 to as much as 23,000 barrels per day (BBL/d) of distillate diesel. Subscribers can read detailed project reports on the unit's turnaround and expansion.
"Regarding our diesel yield improvement projects, we have completed engineering work at Wynnewood and confirmed our initial estimates," Lamp said in the conference call. "We plan to complete tie-ins during the Wynnewood Spring 2024 turnaround. Our overall plan is to increase distillate yield from the two refineries by approximately 6,000 barrels per day over the next two years or three years, which would increase our total distillate yield on crude throughput by approximately 3%."
Marathon is preparing for a series of turnarounds at its refinery in Salt Lake City, Utah, which is the largest in the Beehive State. Units set for inspections and repairs include a 64,000-BBL/d crude unit, a 24,000-BBL/d FCCU, and a 6,000-BBL/d sulfuric alkylation unit; the latter two are designed to support a proposed upgrade to the FCCU that would improve efficiency and reduce operational costs. Subscribers can read detailed reports on turnarounds to the crude unit, FCCU and sulfuric alkylation unit, and the FCCU upgrade.
Marathon executives noted in a recent quarterly earnings call that the company has "pulled forward" some turnarounds planned for 2024 into 2023. Nonetheless, Maryann Mannen, the chief financial officer for Marathon Petroleum, said the first quarter's level of turnaround activity will not be remarkably different from the first quarters of previous years: "In general, notwithstanding the impact of COVID, if you look over an average period of time, our turnaround is pretty similar. We're operating 13 refineries [for] fossil fuel and two [for] renewable diesel. And at every point in time, there is some level of turnaround."
Other refining companies with maintenance projects set to begin in the first quarter include Valero Energy Corporation (NYSE:VLO) (San Antonio, Texas), PBF Energy Incorporated (NYSE:PBF) (Parsippany, New Jersey) and ExxonMobil Corporation (NYSE:XOM) (Spring, Texas). Subscribers can click here for a full list of reports for maintenance-related projects at refineries across the U.S. that are expected to kick off from January through March.
Subscribers to Industrial Info's GMI Project Database 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.
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).
Click on the image at right for a graph detailing the top 10 parent companies for maintenance-related projects at U.S. refineries that are set to begin from January through March.CVR's two largest facilities are preparing for major turnarounds that will support planned capacity additions in the coming years. Its refinery in Coffeyville, Kansas, which is its largest by capacity, is preparing for regular inspections and repairs to its major components, including two crude units, two vacuum units and a fluid catalytic cracking unit (FCCU), among others. CVR aims to develop its renewable product output, particularly for sustainable aviation fuel, and believes Coffeyville's location in the heart of the agricultural belt gives it a strategic advantage. Subscribers to Industrial Info's Global Market Intelligence (GMI) Petroleum Refining Project Database can learn more from a detailed project report.
"Although U.S. refining product demand is down in general, gasoline inventories are roughly in line with five-year averages and distillate inventories are more than 12% below the five-year average," said Dave Lamp, the chief executive officer of CVR, in a recent earnings-related conference call. "Reduced refining capacity in the United States, ongoing turnaround activity and a string of unplanned outages during 2023 have all helped keep refined product inventories in check. Exports of gasoline and diesel have also continued to be strong, consistently averaging over 2 million barrels per day so far in 2023."
CVR also is preparing for a series of turnarounds at its refinery in Wynnewood, Oklahoma, which is about 100 miles south of Cushing, Oklahoma, the "Pipeline Capitol of the World." Among them is a series of inspections and repairs to the diesel hydrotreater unit, which will support a planned debottlenecking of the unit that will expand capacity from 20,000 to as much as 23,000 barrels per day (BBL/d) of distillate diesel. Subscribers can read detailed project reports on the unit's turnaround and expansion.
"Regarding our diesel yield improvement projects, we have completed engineering work at Wynnewood and confirmed our initial estimates," Lamp said in the conference call. "We plan to complete tie-ins during the Wynnewood Spring 2024 turnaround. Our overall plan is to increase distillate yield from the two refineries by approximately 6,000 barrels per day over the next two years or three years, which would increase our total distillate yield on crude throughput by approximately 3%."
Marathon is preparing for a series of turnarounds at its refinery in Salt Lake City, Utah, which is the largest in the Beehive State. Units set for inspections and repairs include a 64,000-BBL/d crude unit, a 24,000-BBL/d FCCU, and a 6,000-BBL/d sulfuric alkylation unit; the latter two are designed to support a proposed upgrade to the FCCU that would improve efficiency and reduce operational costs. Subscribers can read detailed reports on turnarounds to the crude unit, FCCU and sulfuric alkylation unit, and the FCCU upgrade.
Marathon executives noted in a recent quarterly earnings call that the company has "pulled forward" some turnarounds planned for 2024 into 2023. Nonetheless, Maryann Mannen, the chief financial officer for Marathon Petroleum, said the first quarter's level of turnaround activity will not be remarkably different from the first quarters of previous years: "In general, notwithstanding the impact of COVID, if you look over an average period of time, our turnaround is pretty similar. We're operating 13 refineries [for] fossil fuel and two [for] renewable diesel. And at every point in time, there is some level of turnaround."
Other refining companies with maintenance projects set to begin in the first quarter include Valero Energy Corporation (NYSE:VLO) (San Antonio, Texas), PBF Energy Incorporated (NYSE:PBF) (Parsippany, New Jersey) and ExxonMobil Corporation (NYSE:XOM) (Spring, Texas). Subscribers can click here for a full list of reports for maintenance-related projects at refineries across the U.S. that are expected to kick off from January through March.
Subscribers to Industrial Info's GMI Project Database 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.
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).
