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Port Arthur Groundbreaking for 7 billion refinery expansion
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5 Comments ::  :: Business, Local News |
PORT ARTHUR Groundbreaking ceremonies were held for a $7 billion expansion of Motiva Enterprises' local refinery.
The project will double the plant's output to 600,000 barrels per day, making it the nation's largest oil refinery.
"U.S. energy demand will increase by 23 percent between 2005 and 2030, with a 19 percent increase in the demand for oil and other liquid fuels," U.S. Energy Secretary Samuel Bodman said during the ceremony.
This refinery expansion is the largest capital project ever in Texas, said Secretary of State Phil Wilson. The project will create 4,500 construction jobs and 300 permanent jobs, for which Motiva has already begun hiring.
Motiva is a joint venture between Royal Dutch Shell and Saudi Aramco. The expansion is expected to be completed by 2010.
More Good "Energy" for the Texas Gulf Coast
 The new pipeline, called "Texas Access Pipeline," would transport crude oil sourced from the Canadian oil sands region in Alberta and from the upper U.S. Midwest to refiners in the Nederland and Houston, Texas, areas.
Enbridge Inc. and ExxonMobil Pipeline Company announced the two companies will conduct a Solicitation for Binding Shipper Commitment for a proposed new pipeline system, to transport crude oil from Patoka, Illinois, to the Texas Gulf Coast. The new pipeline, called "Texas Access Pipeline," would transport crude oil sourced from the Canadian oil sands region in Alberta and from the upper U.S. Midwest to refiners in the Nederland and Houston, Texas, areas.
The proposed project comprises a new 768-mile, 30-inch diameter pipeline, which would transport crude oil from Patoka, Illinois southward to Nederland, Texas. Also proposed is an 88-mile, 24-inch pipeline to transport crude oil onward from Nederland to a delivery point in the east Houston area. Through connections with existing terminals in Nederland and Houston, the new pipeline system would provide shippers with the added flexibility of moving onto different crude oil distribution pipelines.
See www.texasaccesspipeline.com
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By
Mary Meaux The Port Arthur News @
Monday, December 31, 2007 6:45 AM |
Federal, state and local officials joined Motiva Enterprises executives Monday in ceremonially turning the first shovels of dirt on a $7 billion expansion of the Port Arthur refinery.
Samuel W. Bodeman, U.S. Secretary of Energy, congratulated Motiva and Port Arthur on the project and said the increased production of gasoline that will result from the expansion will be a benefit to the entire nation.
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PORT ARTHUR — For now, the only thing located on the 10 acres of land near the right side of the entrance to the Port Arthur Business Park is grass. And lots of it.
But soon a thriving business will make the park its home, sinking in a total of $7 million for construction, equipment and inventory.
Desselle-Maggard Corporation, a process control company, will pull up roots at its Orange facility and move its headquarters from Baton Rouge, La. to Port Arthur.
Under dark skies and immediately after a heavy downpour, DMC representatives held a groundbreaking not far from the entrance to the park on Tuesday. A large tent kept patrons from the weather elements and held a platform with some of the company’s wares as well as a separate buffet table of food for the celebration.
DMC caters to big industry, selling valves and associated hardware as well as repairing the products. The products are the type used in all refineries and plants.
The company will construct a 65,000 square-foot facility in the park, a size much larger then first anticipated. Joey Jobe, president of DMC, said part of the reason the company chose to up the size of the operation is the billions of dollars in industrial expansions going on in the city.
Dwight Anderson, vice president of services division of DMC, said at first, the Orange location seemed the most logical area for expansion then the industrial park idea was presented to them by former county judge Carl Griffith.
Soon, Griffith had the city manager, president of the Port Arthur Chamber of Commerce and the CEO of the Port Arthur Economic Development Corporation on the telephone. Within a year the plan came to fruition.
DMC’s investment to the community also includes the training of youth. The company plans to build a flow lab and technical conference center and hopes to work with Port Arthur ISD to train its students for future, good paying jobs.
Part of DMC’s plan is to help educate the up-and-coming work force. A collaboration between the business, Port Arthur ISD, Associated Builders and Contractors and Lamar State College-Port Arthur is in the works.
DMC CEO Charles Moniotte said he has met with PAISD superintendent and educators and was impressed with the number of teachers who showed up at the meeting. Moniotte, whose wife is a teacher, said he was swayed to Port Arthur because of that meeting and the fire and dedication he saw within the area.
The economic impact of the business park for a 10-year span show DMC, Triangle Waste Solutions and Reliable Polymer Services with a total of 317 direct and indirect jobs created, $118.6 million in salaries paid to direct and indirect workers, $50 million expected additional taxable sales and purchases and $22 million in total property to be added to local tax rolls over the next 10 years.
“This is a great investment for this community and will help many, many students towards a bright future,” Carl Griffith said. “I want to thank DMC for putting their money where their mouth is.”
Jobe called this one of the finest moments in the history of the business. |
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ByBechtel/Jacobs @
Tuesday, January 01, 2008 5:41 PM |
Motiva awarded a contract to joint venture to manage the expansion project as the engineering, procurement, and construction contractor.
Becon Construction Company, Inc., a subsidiary of Bechtel, is heavily involved in efforts with local schools and agencies to recruit and train craft workers seeking potential employment on the project. |
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ByMotiva @
Tuesday, January 01, 2008 5:47 PM |
Motiva Enterprises 325,000 barrel-per-day refinery expansion in Port Arthur, Texas.
The expansion will increase the refinery’s crude oil throughput capacity to 600,000 b/d, making it the largest refinery in the U.S. and one of the largest in the world.
The upgrades and modernization will lead to new supplies of transportation fuels for U.S. markets, add jobs to the local economy and decrease the refinery’s ozone precursor emissions from present day levels.
Motiva President and Chief Executive Officer William B. Welte welcomed about 150 guests to mark the occasion, including several dignitaries. U.S. Secretary of Energy Samuel W. Bodman will attend and provide remarks, as will Ted Poe, Port Arthur’s hometown U.S. Congressman; Phil Wilson, Texas Secretary of State; Buddy Garcia, Chairman, Texas Commission on Environmental Quality; and Ron Lehman, Commissioner for Employers, Texas Workforce Commission.
Shell, Saudi Aramco and Motiva senior leaders spoke at the event. Including Rob Routs, Executive Director Downstream Royal Dutch Shell plc.; Abdulaziz Al-Khayyal, Sr. Vice President, Industrial Relations, Saudi Aramco; Tom Purves, Motiva Vice President, Manufacturing Gulf Coast - Americas; Todd Monette, Motiva Port Arthur Refinery General Manager; and Forrest Lauher, Motiva Venture Manager for the Port Arthur Expansion Project.
Commenting on the construction groundbreaking, Welte said: “This is a major milestone in the journey to meet our nation’s growing energy demand. By adding 325,000 barrels per day capacity, the expansion is equivalent to building a new refinery.
The expansion will bolster energy security in the U.S. by strengthening the supply of gasoline, diesel, aviation fuels and high quality base oils. The new production capacity is expected to be online in 2010 and will increase Motiva’s supply of Shell-branded fuels to the company’s wholesale and direct supply markets. In all, the refinery will produce about 23 million gallons of transportation fuels per day.
Motiva awarded a contract to Bechtel/Jacobs Joint Venture to manage the expansion project as the engineering, procurement and construction contractor. Coupled with Motiva’s dedication to the environment and health of its workforce, the Bechtel/Jacobs Joint Venture will mandate stringent safety practices throughout the construction project.
The expansion is projected to generate more than 4,500 construction jobs and at least 300 new full-time jobs upon completion.
Motiva is working with the Texas Work Force Commission, Southeast Texas Workforce Development Board, Lamar State College – Port Arthur, represented work groups, vocational institutions and local school systems to recruit and train qualified members of the workforce to take full advantage of the job opportunities. Many local sub-contractors have already been hired for the project.
Headquartered in Houston, Texas, Motiva Enterprises LLC is a refining and marketing joint venture owned by affiliates of Shell and Saudi Aramco.
Motiva’s marketing operations support a network of more than 8,000 Shell-branded gasoline stations in the eastern and southern United States. Company assets include three refineries located in Norco, Louisiana; Convent, Louisiana; and Port Arthur, Texas, currently capable of refining approximately 740,000 barrels per day, and ownership or partial interests in 41 product terminals. More information is available at www.motivaenterprises.com.
Contacts:
Motiva (Port Arthur) Sue Parsley 409-989-7015
Motiva (Houston) Stan Mays 713-241-1582
Shell Shaun Wiggins 713-241-3264
Aramco Services Alan Dodd 713-432-4190
Motiva Media Line 713-241-4544 |
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By
Sempra Energy @
Wednesday, January 09, 2008 8:46 PM |
U.S. Gulf Coast, Sempra Energy has proposed the construction of a marine petroleum terminal and storage facility in Port Arthur, Texas.
The initial phase of the proposed Port Arthur Marine Terminal would provide storage and transportation assistance in the import and export of crude oil, liquid petroleum gas and related products.
The terminal would serve the Gulf Coast region's refineries, pipelines and storage facilities. |
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ByU.S. Department of Energy @
Tuesday, January 29, 2008 10:34 PM |
Remarks by U.S. Department of Energy Secretary Bodman on Motiva Enterprises Refinery Expansion Groundbreaking
It’s good to see Congressman Poe, Rob Routs, Mr. Al-Khayyal and Mayor Prince here. Thank you all for inviting me to be part of this occasion.
In 1901 Texas wildcatters struck oil near here at a place called Spindletop, setting off the Texas Oil Boom. Like the California Gold Rush some 50 years before, the Texas Oil Boom helped to build America.
People moved across the country in search of prosperity. To achieve it, they needed to develop new technologies and build new infrastructure like the original parts of the Port Arthur refinery, which opened here in 1903. As America’s need for energy expanded as our demand for oil and gas grew in tandem with our economy and our mobility this refinery expanded too.
Today, we’re here to break ground on another expansion. I particularly want to thank the leadership of Motiva, operated jointly by Shell and Saudi Refining, Inc., for having the vision to move ahead with it.
When this expansion is complete this facility which is now one of the preeminent refineries on the Gulf Coast will become the largest in the United States and one of the largest in the world. And, if I may be direct, this comes not a moment too soon.
We live in a period in which the oil supply is carelessly close to increasing demand. U.S. refinery capacity is tight especially considering the variety of transportation fuel blends required in the U.S. market. And of course the standards for these blends vary during the course of the year.
As everyone knows, tight supplies in a time of heightened demand lead to higher prices. These higher prices are an indirect tax on the American family and it doesn’t have to be this way. New investment, in both alternative energy and conventional sources, will boost supply and reduce pressure on prices.
The new energy reality is that, according to the International Energy Agency, world energy demand will increase by 55 percent between the years 2005 and 2030, triggering the need for a minimum of $22 trillion of investment in new infrastructure.
At home, U.S. energy demand will increase by 23 percent over the same period, with a 19 percent increase in the demand for oil and other liquid fuels.
All of this creates a clear and present challenge to America’s energy security.
We must push for the expansion of existing facilities and for the replacement of outdated methods of production by new clean, energy efficient technologies. We must also commit to the construction of new, state of the art refineries that will help America meet its petroleum needs well into the future. And we must have new investments, investments like Motiva is making here.
What we are recognizing today is not just an investment in a single refinery it’s an investment in America’s future prosperity. Likewise, we must seek out new energy sources and new technologies and we must work with Congress, the states and the private sector to establish policies and programs that will make those investments, like this one, even more attractive.
As the report I commissioned from the National Petroleum Council makes clear, oil and gas will remain a major source of energy for this country well into the future. We must do all we can to ensure the availability and the affordability of oil and gas in our country.
To fail in this regard would, in my judgment, have a negative impact on the U.S. economy and lead, eventually, to a reduction in the quality of life we enjoy today in America.
It took a long time for America to get to this point; the progress we need to make to enhance our energy security through the diversification and creation of new energy supplies, suppliers and supply routes won’t happen overnight. But, as this ground breaking indicates, that effort is starting.
Let me again offer my congratulations to Motiva and to Shell and Saudi Aramco for the expansion of this facility something by which all Americans will benefit.
Thank you.
Location: Port Arthur, Texas
Media contact(s): Julie Ruggiero, (202) 586-4940 |
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