Yee Haw! Texas Stands Tall with Refinery Projects under Construction

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Researched by Industrial Info Resources (Sugar Land, Texas)--When it comes to U.S. refinery projects under construction, Texas easily outdistances the remainder of the pack. Industrial Info is tracking more than $9.1 billion worth of U.S. Petroleum Refining projects now in the construction phase. The Lone Star State is home to nearly $6.75 billion of that activity.



The most substantial project belongs to Exxon Mobil Corporation (NYSE:XOM) (Irving, Texas) with its massive refinery expansion in Beaumont, Texas. The expansion will increase the capacity of the 344,000-barrel-per-day (BBL/d) crude oil refinery by 65% with the installation of a third crude unit, capable of processing 250,000 BBL/d.

The new crude unit will expand light crude oil refining, supported by the company's increased crude oil production in the Permian Basin. Oil-equivalent production from the Permian increased by 120,000-BBL/d in 2019, according to ExxonMobil.

"If you look at what we are doing in the Permian and the investments that we are making in chemical and refining, those are geared toward the barrels coming out of the Permian and some of the opportunities we see with those barrels," said Chief Executive Officer Darren Woods during the company's fourth-quarter 2019 earnings conference call in January. "That would have been hard to do if we were a standalone downstream company or a standalone upstream company."

TechnipFMC plc (NYSE:FTI) (Houston, Texas) is providing engineering, procurement and construction (EPC) services for the Beaumont project, which started construction in January 2019 and is planned to wrap up in first-quarter 2022. For more information, see Industrial Info's project report.

At Phillips 66's (NYSE:PSX) (Houston) Sweeny Refinery in Old Ocean, Texas, construction continues on two Y-grade natural gas liquids (NGL) fractionation units. Each unit will be capable of processing 150,000 BBL/d, treating and fractionating demethanized natural gas mixture into ethane, propane, isobutene and other materials to supply the petrochemical and heating markets. Both units are planned for completion in fourth-quarter 2020. For more information, see Industrial Info's project reports on Unit #2 and Unit #3, and February 3, 2020, article - Phillips 66 Expands Midstream Footprint with Pipeline, Fractionation, Terminals Projects.

At its Port Arthur, Texas, refinery, Valero Energy Corporation (NYSE:VLO) (San Antonio, Texas) kicked off construction late last year on its new delayed coker unit addition. The 55,000-BBL/d, four-drum delayed coker will allow the refinery to produce additional vacuum gas oil to supply both hydrocrackers at the site. The 600-ton-per-day sulfur recovery unit will support the delayed coker. For more information, see Industrial Info's project reports on the delayed coker unit and sulfur recovery unit, and February 10, 2020, article - Valero's Alternative Fuels Segments Keep Quarterly Profit Ahead Year over Year.

At Marathon Petroleum's (NYSE:MPC) (Findlay, Ohio) Galveston Bay Refinery in Texas City, Texas, work continues on a crude unit expansion that will add 40,000 BBL/d to the complex's current capacity of 437,000 BBL/d. Part of the company's South Texas Asset Repositioning (STAR) program, the project will improve gas oil and distillates yields. Fluor Corporation (NSYE:FLR) (Irving) is providing engineering and procurement for the expansion, which is planned for completion in early 2022. For more information, see Industrial Info's project report and August 13, 2019, article - Marathon Petroleum, MPLX Progress with Midstream, Downstream Projects.

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.