Motiva Announces Progress on Refinery Expansion Project

Motiva Enterprises LLC has said that it has made significant progress toward expanding refining capacity in the United States. The company has completed initial project scoping and process design for the potential expansion. Results indicate that a 325,000-barrel-per-day crude throughput increase at the Motiva Port Arthur Refinery in Texas would be the best, most logical choice. The project would make the Port Arthur Refinery the largest in the country.

The potential expansion would bring much needed supplies of transportation fuels to the U.S. market - particularly the Eastern and Southern regions of the country where Motiva facilities are located. While the proposed expansion would notably increase refining capacity, modern design and technology would minimize associated emissions. Motiva would utilize advanced technology in all new installations and replace existing systems to significantly lower emissions from refinery operations on a per barrel basis.

Saudi Refining Inc. and Shell Oil Company, joint owners of the U.S.-based Motiva, still need to finalise certain details relative to the project. Pending necessary regulatory approvals, Motiva would expect to initiate final engineering later in 2006 and begin construction in 2007. The new capacity would be projected to come online in 2010.

"We are confident that the market fundamentals will support an expansion of our U.S. refining capacity. Adding 325,000 barrels-per-day of refining capacity would be the equivalent of building a new refinery in the United States," said William B. Welte, Motiva President and Chief Executive Officer. "We are taking deliberate steps to strengthen our nation's ability to meet future demand for gasoline, diesel and aviation fuels."

Motiva continues to identify opportunities to expand refining capacity at all three of its Gulf Coast refineries located at Port Arthur, and at Convent and Norco in Louisiana.

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Posted 04/05/06

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