Marathon Petroleum dedicated the bulk of its first-quarter 2023 capex to advancing its balanced approach of optimizing traditional crude oil refining operations while furthering low-carbon projects.

Marathon Petroleum Corp. (MPC) dedicated the bulk of its first-quarter 2023 capex to advancing its balanced approach of optimizing traditional crude oil refining operations while furthering projects in preparation for a low-carbon future in line with the global energy transition.

Of the total $430 million in capital expenditures and investments during the first quarter, MPC dedicated $421 million—up $177 million compared with first-quarter 2022—to ongoing traditional and renewables refining projects, the operator said on May 2.

In its quarterly earnings report to investors, MPC confirmed that it has completed its South Texas Asset Repositioning (STAR) program at the 593,000-b/d Galveston Bay refinery in Texas City, Tex., which included works to further integrate the operator’s former Texas City refinery into the adjacent Galveston Bay refinery to improve the site’s efficiency and reliability by increasing residual oil processing capabilities, upgrading the crude unit, and integrating logistics (OGJ Online, Aug. 2, 2022).

Officially started up in April and scheduled to ramp up throughout second-quarter 2023, the Galveston Bay STAR project, upon reaching full operation, aims to add 40,000 b/d and 17,000 b/d of incremental crude and resid processing capacity, respectively, at the site, MPC said.

Alongside unidentified projects designed to help reduce future operating costs and improve the competitive position across the operator’s US refining assets, MPC said other first-quarter capex covered expenses related to an emissions-reduction program are under way at the 363,000-b/d Los Angeles refinery, as well as furthering second-phase works for the conversion of the former Martinez, Calif., conventional crude refinery into a renewable fuels production site (OGJ Online, Feb. 6, 2023).

Part of its Martinez Renewables LLC 50-50 joint venture with Neste Corp., MPC confirmed Phase 1 of the Martinez conversion project reached its full production capacity for renewable diesel of 260 million gal/year during the first quarter, as planned.

With construction activities currently on schedule for Phase 2 and pretreatment capabilities for renewable feedstocks at the site due online during second-half 2023, MPC said it expects Martinez Renewables to reach full nameplate production capacity of 730 million gal/year by yearend.

Oil&GasJournal by Robert Brelsford, May 12, 2023