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Motiva Integrates Refineries to Create Louisiana Refining System
Motiva Enterprises Integrates Refineries to Create Louisiana Refining System
HOUSTON - March 26, 2015 – Motiva Enterprises LLC (Motiva) announced plans today to integrate the company’s two Louisiana refineries – Norco and Convent – creating the Louisiana Refining System. This multi-phased project creates significant operational opportunities including increasing access to advantaged light oil, optimizing inter-plant intermediates and conversion units, increasing distillates yield and reducing operating costs.
"Through the implementation of these projects, we are creating a world-scale, integrated refining system that leverages the best aspects of our two Louisiana refineries in Convent and Norco," said Dan Romasko, President and CEO of Motiva. "At 620,000 barrels per day, our Port Arthur refinery is already the largest refinery in North America and benefits from this scale and efficiency. With an integrated crude capacity over 500,000 barrels per day, our Louisiana Refining System will rank in the top five of North American refineries in capacity and deliver significant value to Motiva’s portfolio."
The Maurepas pipeline system is the first step in the Louisiana integration project. This system is comprised of three pipelines that will be built, owned and operated by affiliates of SemGroup Corporation, a publicly traded midstream service company.
The Maurepas crude pipeline will connect the existing LOCAP terminal in St. James, Louisiana to the Norco refinery via a 34-mile pipeline, greatly improving access to advantaged domestic crude oil. The Maurepas 35-mile and the 34-mile intermediates pipelines will directly connect the Norco and Convent refineries supporting optimization of both plants’ conversion units while improving logistics efficiency, alleviating dock congestion and allowing additional product exports.
“The Louisiana integration strategy is an exciting opportunity for Motiva to unlock significant value for our owners,” said Romasko. "This project is well aligned with our strategic priorities and represents a performance step change supporting our transformation journey.”
When the pipelines are complete, Motiva plans to idle the Fluid Catalytic Cracker (FCC) at its Convent refinery. Additionally, the company intends to reconfigure the existing hydrocracker unit at its Norco refinery to process 30,000 barrels per day of additional gas oil into high quality diesel. On a combined basis, the Louisiana Refining System is expected to drive incremental annual benefits of $350 million of EBITDA.
About Motiva Enterprises LLC
Headquartered in Houston, Texas, Motiva Enterprises LLC refines, distributes and markets petroleum products. With three refineries in the U.S. Gulf Coast region, Motiva has a combined capacity of more than 1.1 million barrels per day. The company’s marketing operations support a network of approximately 8,300 Shell-branded gasoline stations in the eastern and southern United States. Motiva is owned equally by affiliates of Saudi Aramco and Shell Oil Company.
Certain matters contained in this press release include “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. We make these forward-looking statements in reliance on the safe harbor protections provided under the Private Securities Litigation Reform Act of 1995.
All statements, other than statements of historical fact, included in this press release, including the expected capacities of the company’s refineries, the anticipated benefits of the Louisiana integration strategy and the financial benefits of the Louisiana integration strategy, may constitute forward-looking statements. Forward-looking statements include, among other things, statements concerning the potential exposure of Motiva to market risks and statements expressing management's expectations, beliefs, estimates, forecasts, projections and assumptions. These forward-looking statements are identified by their use of terms and phrases such as “anticipate”, “believe”, “could”, “estimate”, “expect”, “intend”, “may”, “plan”, “objectives”, “outlook”, “probably”, “project”, “will”, “seek”, “target”, “risks”, “goals”, “should” and similar terms and phrases. There are a number of factors that could affect the future operations of Motiva and could cause those results to differ materially from those expressed in the forward-looking statements included in this presentation, including (without limitation): (a) price fluctuations in crude oil, natural gas and commodities; (b) changes in demand for Motiva's products; (c) currency fluctuations; (d) loss of market share and industry competition; (e) environmental and physical risks; (f) the risk of doing business in developing countries and countries subject to international sanctions; (g) legislative, fiscal and regulatory developments including potential litigation and regulatory measures as a result of climate change; (h) economic and financial market conditions in various countries and regions; (i) political risks, including the risks of expropriation and renegotiation of the terms of contracts with governmental entities, delays or advancements in the approval of projects and delays in the reimbursement for shared costs; and (j) changes in trading conditions. All forward-looking statements contained in this presentation are expressly qualified in their entirety by the cautionary statements contained or referred to in this section. Readers are cautioned not to place undue reliance on any forward-looking statements contained in this press release, which reflect management’s opinions only as of the date hereof. Except as required by law, we undertake no obligation to revise or publicly release the results of any revision to any forward-looking statements.
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