Renewables push limits US refiners’ capacity options

Renewables push limits US refiners’ capacity options

Renewables push limits US refiners' capacity options

With a new emphasis on renewables projects, refiners will likely opt to push back turnarounds rather than expand capacity to meet demand, writes Dylan Chase

Houston, 1 June (Argus) — US refiners are executing a few capital projects that will expand domestic crude processing capacity before the end of 2023, but expensive forays into renewable fuel production will likely limit future capacity expansions.

Three of the largest US refiners are working on capital projects in Texas that could add 350,000 b/d of crude processing capacity to the US refining portfolio by the end of next year, partially offsetting the effect of recent closures. The largest expansion under way is ExxonMobil's Blade (Beaumont Light Atmospheric Distillation Expansion) project at its 369,000 b/d refinery in Beaumont. This will add another 250,000 b/d crude distillation unit by next year, in conjunction with the company's plan to increase oil production from Texas' Permian basin.

Valero plans to start-up a 55,000 b/d delayed coker and sulphur recovery unit from the first half of next year at its 395,000 b/d Port Arthur refinery. And Marathon Petroleum is working on the $1.5bn South Texas Asset Repositioning (Star) project at its 593,000 b/d Galveston Bay