EIA: US refining capacity increased in 2023 with expansions at existing facilities

Calendar day capacity represents the operator’s estimate of the input volume that a distillation unit can process in a 24 h period under usual operating conditions, considering the effects of both planned and unplanned maintenance. The calendar day capacity companies report to EIA may differ from the headline capacity numbers that companies use elsewhere because of differences in estimation methodology.

Most additions to US refinery capacity in the last 10 years have been expansions to existing facilities, the reactivation of previously decommissioned units, or the addition of relatively small facilities. Reductions in refinery capacity largely reflect facilities that were decommissioned due to damage, as well as facilities that transitioned from petroleum refining to renewable fuels processing.

How did US refining change in 2023?

In 2024, the three largest refiners in the US — Marathon, Valero, and ExxonMobil — all reported increases in capacity compared with 2023. Phillips 66, the fourth-largest US refiner, reduced capacity last year. PBF Energy overtook Chevron to become the fifth-largest US refiner by portfolio capacity.

The increase in capacity in the beginning of 2024 primarily reflects increases in capacity at existing facilities. In particular, ExxonMobil completed a major refinery capacity addition in Beaumont, Texas, in March 2023, boosting the facility’s total crude oil distillation capacity from 369 000 b/cd to 609 000 b/cd.

Valero also completed an expansion project at its Port Arthur refinery, increasing its distillation capacity by 25 000 b/cd to 360 000 b/cd. The increase in distillation capacity came alongside a 50 000 b/cd increase in the refinery’s coking capacity, increasing its ability to process heavier crude oil grades into more high value products, such as gasoline or diesel fuel.

Finally, Marathon’s Galveston Bay refinery increased its capacity 6%, to 631 000 b/cd. The additional capacity means the Galveston Bay refinery has overtaken Motiva’s 626 000-b/cd Port Arthur refinery as the largest refinery in the US in terms of atmospheric distillation capacity.

Three major refining transactions took place in 2023. In February 2023, Canadian refiner Cenovus acquired the 150 800 b/cd Toledo refinery in Ohio from BP-Husky Refining. In June, ExxonMobil sold its 61 500 b/cd refinery in Billings, Montana, to Par Montana — a portfolio company of Par Pacific. Finally, in September, Oneok acquired Magellan Midstream Partners, including Magellan’s 42 500 b/cd condensate splitter in Corpus Christi, Texas, as well as the company’s network of petroleum product and natural gas liquid pipeline infrastructure.

Read the article online at: https://www.hydrocarbonengineering.com/refining/31072024/eia-us-refining-capacity-increased-in-2023-with-expansions-at-existing-facilities/