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Guardian Unlimited: Shell invests to boost capacity at Texas refinery

Mark Milner, industrial editor
Friday September 21, 2007

Royal Dutch Shell and a Saudi Arabian partner have given the go-ahead to a $7bn investment which will more than double the size of their refinery in Port Arthur, Texas.

The refinery, which is jointly owned by the Anglo-Dutch group and Saudi Refining, has a capacity of 285,000 barrels a day. The new investment will increase that to about 600,000 barrels. “Shell’s investment in the Motiva Port Arthur Refinery expansion will lead to increased supplies of gasoline, diesel and aviation fuels in the US,” said Rob Routs, Royal Dutch Shell’s executive director downstream.

The company said the expansion of the refinery was equivalent to building the first new refinery in the US in more than 30 years. When it is completed at the end of the decade the expanded refinery will be the largest in the US and the second largest in the world.

US refiners have benefited from increasing demand for refined products at a time when refinery capacity has grown only slowly, a situation which has made the US increasingly dependent on imports. Some analysts have blamed shortages of refining capacity following hurricanes, maintenance requirements and accidents, for pushing up prices.

Royal Dutch Shell said the new facility would use advanced technology to cut emission levels. “Shell is committed to meeting the global energy challenge by ensuring our downstream business maintains a world class capability,” Mr Routs said.

http://business.guardian.co.uk/story/0,,2174465,00.html

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