lined a $220-million budget for upgrading works at the
Garyville refinery’s fluid catalytic cracker (FCC) to boost
the manufacturing site’s output of alkylate and light products, the company said. Started in third-quarter 2016, the
Garyville FCC-alkylation revamp was targeted for completion by yearend. A similar $40-million
FCC-alkylation project also is slated at
Marathon’s 132,000-b/d refinery in Detroit, Mich., while another $95-million
investment was earmarked for projects
designed to expand ULSD export capacity at the 459,000-b/d Galveston Bay,
Tex., refinery ( 30,000 b/d ULSD by late
2016; 115,000 b/d of gasoline, ULSD in
In August, Tesoro Corp. officially became Andeavor (OGJ Online, Aug. 1,
2017). The name change followed the
former Tesoro’s acquisition of Western
Refining Inc. completed on June 1, at
which time Andeavor took ownership
of Western’s three refineries, including
the 131,000-b/sd (124,450-b/cd) El Paso,
Tex., refinery; the 25,000 b/sd (23,750
b/cd) refinery near Gallup, NM; and the
98,000-b/sd (93,100-b/cd) St. Paul Park
refinery (OGJ Online, June 1, 2017; Mar.
Alongside ownership of the refineries,
Andeavor’s purchase gained the independent refiner access to price-advantaged
crude feedstock in the Permian, San
Juan, and Bakken basins, the Western
Canadian Sedimentary Basin, as well as
access to a fully integrated crude pipeline
system that serves western refineries and
third parties, including a 17% interest in
the 465,000-b/d Minnesota pipeline, the
primary supply route for western Canadian and North Dakota crude to the St.
Paul Park refinery.
The finalized transaction followed
earlier consolidation moves by both independent refiners, including Tesoro’s
acquisition of Dakota Prairie Refining
LLC, the former MDU Resources-Calu-met Specialty Products Partners LP joint
venture that operated a 20,000-b/d diesel
refinery near Dickinson, ND, and Western’s takeover of Northern Tier Energy
LP’s high-conversion refinery at St. Paul
Park, Minn. (OGJ Online, June 28, 2016;
June 24, 2016).
With the Western acquisition com-
pleted, Andeavor now owns 10 refineries with a combined
refining capacity of more than 1. 1 million b/sd ( 1.05 million
Andeavor also advanced its proposed $460-million program to physically connect and further integrate its existing,
ExxonMobil Corp. returned its 365,000-b/d Beaumont, Tex., refinery to operation
within weeks after Hurricane Harvey’s intense rains flooded a number of critical
pumps and pipeline facilities in and around the US Gulf Coast refining complex.
Photo from ExxonMobil.