Reports related to this article:
Project(s): View 9 related projects in PECWeb
Plant(s): View 5 related plants in PECWeb
en
Researched by Industrial Info Resources (Sugar Land, Texas)--Most Americans think of Thanksgiving and Christmas as their biggest holidays, but for the Petroleum Refining Industry, the happiest season arrives during peak summer travel. Marathon Petroleum Corporation (NYSE:MPC) (MPC) (Findlay, Ohio) was among the refining giants crossing their fingers in the second quarter for a "return to normal," as U.S. gasoline and diesel fuel demand all but reached pre-pandemic levels. But renewed concerns about the COVID-19 pandemic have taken the wind out of the industry's sails (or "sales," really) by potentially hampering road and air travel in the weeks to come. Industrial Info is tracking $6.75 billion in active projects from Marathon Petroleum, including nearly $2 billion worth under construction in the U.S.
Click on the image at right for a graph detailing Marathon Petroleum's active U.S. projects, by industry sector.
MPC's second-quarter net income totaled $8.5 billion, a massive increase from just $9 million in the same period last year. Revenues totaled $29.8 billion, compared with $12.3 billion in second-quarter 2020. The refiner's crude capacity utilization in the second quarter increased to 94%, from 71% in the same period last year, resulting in total throughput of 2.9 million barrels per day (BBL/d); accordingly, MPC's Refining & Marketing segment margins increased 63% to $12.45 per barrel.
But MPC cautioned that it expects to process a slightly lower total throughput--2.8 million BBL/d--in the current quarter, largely due to concerns surrounding the Delta variant of COVID-19, which has been spreading rapidly across the U.S. in recent weeks, particularly among the unvaccinated.
Fortunately for MPC, one of its largest developments under construction--intended to better economize operations at two of its largest facilities, thus reducing costs in the long run--has managed to avoid any lengthy delays related to the pandemic: the South Texas Asset Repositioning (STAR) program at the Galveston Bay and Texas City refineries, on the Texas Gulf Coast. MPC is expanding capacity and streamlining operations through a series of projects that kicked off in mid-2019, including:
MPC's natural gas-processing segment reported a slight dip in volumes processed in second-quarter 2021 at 8.37 billion cubic feet per day, which is about 1.2% below the same period last year. MarkWest Energy Partners LP, a subsidiary of MPC, has two major gas-processing projects under construction: the $150 million Smithburg Cryogenic Natural Gas Processing Complex in New Milton, West Virginia, which will process 200 million standard cubic feet per day of gas from the Marcellus Shale, and the $125 million Preakness Natural Gas Processing Plant in Orla, Texas, which is expected to process 200 million standard cubic feet per day from the Permian's Delaware Basin. The projects are expected to wrap up in the coming weeks and in first-quarter 2022, respectively. Subscribers can learn more from Industrial Info's reports on the Smithburg and Preakness projects.
In addition to the abovementioned capital-spending projects, Industrial Info is tracking $545 million worth of U.S.-based maintenance-related projects from MPC and its subsidiaries. Subscribers can click here for a list.
During the second quarter, MPC sold retail chain Speedway to 7-Eleven Incorporated for roughly $21 billion, or about $17.2 billion in after-tax proceeds.
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.
Click on the image at right for a graph detailing Marathon Petroleum's active U.S. projects, by industry sector.MPC's second-quarter net income totaled $8.5 billion, a massive increase from just $9 million in the same period last year. Revenues totaled $29.8 billion, compared with $12.3 billion in second-quarter 2020. The refiner's crude capacity utilization in the second quarter increased to 94%, from 71% in the same period last year, resulting in total throughput of 2.9 million barrels per day (BBL/d); accordingly, MPC's Refining & Marketing segment margins increased 63% to $12.45 per barrel.
But MPC cautioned that it expects to process a slightly lower total throughput--2.8 million BBL/d--in the current quarter, largely due to concerns surrounding the Delta variant of COVID-19, which has been spreading rapidly across the U.S. in recent weeks, particularly among the unvaccinated.
Fortunately for MPC, one of its largest developments under construction--intended to better economize operations at two of its largest facilities, thus reducing costs in the long run--has managed to avoid any lengthy delays related to the pandemic: the South Texas Asset Repositioning (STAR) program at the Galveston Bay and Texas City refineries, on the Texas Gulf Coast. MPC is expanding capacity and streamlining operations through a series of projects that kicked off in mid-2019, including:
- a $500 million crude unit expansion at the Galveston Bay Refinery, from 437,000 barrels per day (BBL/d) to 477,000 BBL/d; see project report
- a $500 million hydrocracker unit expansion at the Galveston Bay Refinery, from 64,000 BBL/d to 84,000 BBL/d; see project report
- a $500 million addition of offsite utility facilities for the Galveston Bay Refinery, to accommodate the crude and hydrocracker expansions; see project report
- a $200 million hydrocracker unit addition at the Texas City Refinery, to produce 65,000 BBL/d of ultra-low-sulfur diesel; see project report
MPC's natural gas-processing segment reported a slight dip in volumes processed in second-quarter 2021 at 8.37 billion cubic feet per day, which is about 1.2% below the same period last year. MarkWest Energy Partners LP, a subsidiary of MPC, has two major gas-processing projects under construction: the $150 million Smithburg Cryogenic Natural Gas Processing Complex in New Milton, West Virginia, which will process 200 million standard cubic feet per day of gas from the Marcellus Shale, and the $125 million Preakness Natural Gas Processing Plant in Orla, Texas, which is expected to process 200 million standard cubic feet per day from the Permian's Delaware Basin. The projects are expected to wrap up in the coming weeks and in first-quarter 2022, respectively. Subscribers can learn more from Industrial Info's reports on the Smithburg and Preakness projects.
In addition to the abovementioned capital-spending projects, Industrial Info is tracking $545 million worth of U.S.-based maintenance-related projects from MPC and its subsidiaries. Subscribers can click here for a list.
During the second quarter, MPC sold retail chain Speedway to 7-Eleven Incorporated for roughly $21 billion, or about $17.2 billion in after-tax proceeds.
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.
