Motiva Enterprises LLC, the US joint venture owned by Shell Oil Company and Saudi Refining, Inc., announced today it is considering a capital investment strategy to increase refining capacity at one or more of its petroleum product refineries. Several options are being considered to increase production of transportation fuels at Motiva’s Gulf Coast network of refineries. Expansion projects being considered by the company range from 100,000 barrels per day to 325,000 barrels per day. Key factors under consideration by Motiva for a proposed refinery expansion include the overall cost to design, engineer, build and operate new processing units, as well as favorable indicators of future crude supply and related costs. Motiva is pursuing a focused and disciplined strategy of operational excellence and effective integration of activities across all businesses. The company’s business plan is dedicated to improving its asset portfolio through capital investment to further strengthen and extend its core assets. Increasing production of transportation fuels is consistent with Motiva’s intent to bolster the company’s core asset base. “Demand for transportation fuels such as gasoline, diesel and aviation fuel in the United States is growing at a rate that exceeds current and projected domestic refining capacity,” said William B. Welte, Motiva President and Chief Executive Officer. “Our Gulf Coast refineries are strategically located to serve this current and future demand. All three Motiva refineries have ready access to waterborne crude oil and major product pipelines, and are viable candidates for a refinery expansion.” Motiva’s refineries are located in Port Arthur, Texas; Convent, Louisiana; and Norco, Louisiana. Motiva will commence with preliminary process engineering work to evaluate expansion possibilities for increasing capacity at the company’s Gulf Coast based refineries. Capital projects of the size and scope being considered for increasing production capacity generally occur in three stages including project scoping, process design and engineering and finally facility construction. A decision to move forward on a preferred expansion project and a refinery location is expected early next year. Motiva Enterprises LLC owns and operates refineries capable of refining approximately 780,000 barrels per day, a distribution system including ownership interests in 47 product terminals, and a marketing network that supports more than 9,000 branded gasoline stations in the Eastern and Southern United States.
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