Marathon Petroleum CEO outlines 2015 plan for refining expenditures
Marathon Petroleum Corp.’s (MPC) president and CEO, Gary R. Heminger, delivered a positive outlook to investors and industry analysts at the Credit Suisse 2015 Energy Summit in Vail, Colorado this week.
MPC had previously announced a $2.53-B capital expenditures plan for 2015. The investment plan is budgeted at $1.28 B, which includes approximately $235 MM for midstream investments, approximately $370 MM for refining margin enhancement projects and approximately $675 MM for refinery-sustaining capital.
At the Credit Suisse investor meeting, Heminger stressed the main focuses of the investment program are to improve the connectivity between the Galveston Bay and Texas City, Texas refineries, and to allow additional synergies through the integration of these two proximate refineries. "Our focus for refining in 2015 is to invest in projects that enhance our overall return," Heminger said.
The Galveston Bay refinery is the former BP-Amoco Texas City refinery, which has throughput capacity of 475 Mbpd and is near Marathon’s smaller Texas City refinery, which has a capacity of 84 Mbpd.
MPC is increasing light sweet crude and condensate processing capacity. The company recently finished building a 25 Mbpd condensate splitter at its Canton, Ohio refinery. A 35 Mbpd splitter is slated for completion by the second quarter of 2015 at Marathon's Cattesburg, Kentucky refinery. Both refineries are located near the Utica shale play.
Also, a 30 Mbpd revamp is planned at the Robinson, Illinois refinery to improve the processing of light crudes. This project is expected to be completed in 2016.
MPC plans to revamp crude and vacuum units to further optimize for future crude availability and improve distillate recovery. More hydrotreating capacity, especially at the Galveston Bay refinery, is under development, with the goal to shift to 100% ULSD production. MPC has plans to idle the smaller, older fluid catalytic cracking unit (FCCU) at the Galveston Bay–Texas City refining complex.
Heminger also announced company goals to increase refined product export capabilities to 400 Mbpd in 2015 and increase bottom-upgrading capacity.
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