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Petroleum Refining

Marathon Petroleum Finalizes Merger with Andeavor, Encompassing $6 Billion in Projects

Marathon Petroleum Corporation (NYSE:MPC) (Findlay, Ohio) has completed its acquisition of fellow refiner Andeavor, creating the largest the refiner in the United States.

Released Tuesday, October 02, 2018

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Researched by Industrial Info Resources (Sugar Land, Texas)--Marathon Petroleum Corporation (NYSE:MPC) (Findlay, Ohio) has completed its acquisition of fellow refiner Andeavor, creating the largest the refiner in the United States. Andeavor ceased trading on the New York Stock Exchange on Monday. Industrial Info is tracking nearly $6 billion in projects involving Marathon and the former Andeavor.

Among Marathon's top projects is the South Texas Asset Repositioning (STAR) project, which includes several sub-projects at the company's Galveston Bay and Texas City refineries in Texas. Fluor Corporation (NYSE:FLR) (Irving, Texas) is performing engineering on the project, which has an estimated total investment value (TIV) of $1.5 billion. Most parts of STAR are expected to kick off early next year, taking about three years to complete.

Included in the STAR program is the expansion of the crude units at the Galveston Bay refinery. The project will increase the capacity of the existing 437,000-barrel-per-day (BBL/d) crude complex by adding 40,000 BBL/d of capacity to improve gas oil and distillate yields. For more information, see Industrial Info's project report. Also planned for the refinery is the expansion of a residual hydrocracker. The project will increase the capacity of the existing 64,000-BBL/d hydrocracker by 20,000 BBL/d and will reduce sulfur content. For more information, see Industrial Info's project report.

At the Texas City refinery, Marathon is preparing for the addition of a diesel hydrotreater. The 65,000-BBL/d unit will produce 100% ultra-low-sulfur diesel. For more information, see Industrial Info's project report.

In Detroit, Michigan, Marathon is underway with the expansion of a fluid catalytic cracking unit (FCCU). The project will expand the 40,000-BBL/d FCCU capacity to approximately 50,000 BBL/d to increase light-end products. The $140 million project kicked off this summer and is expected to be completed this quarter. Fluor is providing engineering, procurement and construction. For more information, see Industrial Info's project report.

Among the projects formerly belonging to Andeavor is the addition of a gasoline hydrotreater unit at the refinery in Mandan, North Dakota. The 15,000-BBL/d hydrotreater is designed to meet Tier 3 specifications, which reduce the maximum sulfur content in gasoline from 30 parts per million (ppm) to 10 ppm. Construction began in the first half of this year and is expected to be completed in the third quarter of next year. Burns & McDonnell Incorporated (Kansas City, Missouri) is the engineer. For more information, see Industrial Info's project report.

Another Tier 3 project underway at a former Andeavor refinery is a gasoline desulfurization unit revamp at the refinery in Salt Lake City, Utah. The project began in the third quarter of this year, and completion is expected in fourth-quarter 2019. For more information, see Industrial Info's project report.

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.
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