01 May 2014 23:59 [Source: ICIS news]
HOUSTON (ICIS)--US refiner Marathon Petroleum reported a $150m loss in Q1 2014 on higher refinery maintenance costs, the company said on Thursday.
The company performed maintenance activities at its Garyville refinery in Louisiana and its newly purchased Galveston Bay refinery in Texas.
At the Garyville site, Marathon performed normal maintenance of the crude unit and expanded the hydrocracker to 110,000 bbl/day from 90,000 bbl/day.
“We calculate the lost opportunity was approximately $150m due to the maintenance activities that we had the first quarter. And we’re very pleased … as Galveston Bay has come back up and the run rates and how it's performing, and the same way with Garyville,” said Gary Heminger, Marathon’s CEO and president.
The company is also working on an upgrade project at the Garyville site, which includes hydrocracking and desulfurisation equipment along with basic infrastructure such as buildings, tanks, cooling towers and rail and electrical facilities. Marathon recently submitted the necessary air permits.
“[T]hroughout this year, we have a more detailed engineering effort going on. A decision point on this project will be in the first quarter of next year. But everything still looks very good on the project,” said Richard Bedell, Marathon’s senior vice president of refining.Follow Anna on Twitter
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