Marathon begins Detroit refinery expansion

20 June 2008 18:30  [Source: ICIS news]

HOUSTON (ICIS news)--Marathon Oil Corporation said on Friday that construction of a $1.9bn (€1.2bn) heavy oil upgrading project at its Detroit refinery was underway following issuance of a state air quality permit.

Marathon said the project, which is expected to be complete in late 2010, will increase the refinery's total capacity from 102,000 bbl/day to 115,000 bbl/day, and will include an additional 80,000 bbl/day of heavy oil capacity.

The increased refining capacity will supply more than 400,000 gal/day in additional transportation fuels to the marketplace.

"The Detroit Heavy Oil Upgrade Project is illustrative of strategic investments we're making across our downstream business to increase coking capacity, lower feedstock costs as well as increase efficiency and flexibility, so we can continue providing competitive returns in a challenging downstream environment," said Gary Heminger, executive vice president of Marathon.

By sourcing additional crude oil from Canada, the project will provide improved crude oil supply security for Michigan's only refinery, Heminger added.

($1 = €0.65)

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By: Brian Balboa
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