US refiners invest sparingly in new capacity

US refiners invest sparingly in new capacity

Houston, 26 May (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 capacity expansions in future turnarounds.

Three of the largest refiners in the US are currently working on capital projects that could offer another 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 around the industry.

The largest refinery expansion currently underway in the US is ExxonMobil's BLADE (Beaumont Light Atmospheric Distillation Expansion) project at its 369,000 b/d refinery in Beaumont, Texas. The project will add another 250,000 b/d crude distillation unit to the facility by next year in conjunction with the company's plan to increase oil production from Texas' Permian basin.

Valero is steering its own expansion project in Texas, with plans to start-up a 55,000 b/d delayed coker and sulfur recovery unit from the first half of next year at its 395,000 b/d Port Arthur refinery. The project will increase the facility's heavy-sour crude oil and residual processing capacity.

Marathon Petroleum continues work on the South Texas Asset Repositioning (STAR) project at its