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FINANCIAL NEWS
Saudi Aramco, Shell complete expansion in Motiva JV
02 Jun 2012
(MENAFN) Saudi Aramco and Royal Dutch Shell uncovered the completion of its USD10 billion expansion plan for their joint-venture Motiva Enterprises Texas Gulf Coast refinery, as it reached its full output capacity, Reuters reported.
The plan includes building a new crude distillation unit (CDU) and associated units, taking the refinery’s total output to 600,000 bpd capacity from 258,000 bpd output before the expansion, taking the crown from Exxon Mobil Corp’s 560,640 bpd Baytown, Texas, refinery, as the largest in the country.
The expansion project also targets boosting fuel exports to 100,000 bpd once pipeline infrastructure from the plant to its docks is completed, according to Motiva president and CEO Bob Pease.
The Motiva project was launched in 2007, when US fuel demand was up and refinery capacity was seen as inadequate. That changed when the global financial crisis hit, slashing demand and prompting closures of several unprofitable refineries.
Al-Falih, president and CEO of Saudi Aramco said that Motiva postponed the expansion plans for about a year in late 2008 to cut costs.
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