Expansion Enhances Refinery Output by 15%
Chevron U.S.A. (CUSA), a subsidiary of global energy leader Chevron, has successfully completed a major retrofit at its Pasadena refinery in Texas. The upgrade increases the refinery’s capacity to process lighter crude oils by approximately 15%, raising its daily output to 125,000 barrels per day (bpd). This project is part of Chevron’s broader strategy to strengthen its refining footprint in the Gulf Coast and enhance its ability to meet the growing demand for petroleum products in key U.S. markets, especially Texas and Louisiana.
Light Tight Oil (LTO) Project to Tap Into Permian Basin Crude
The retrofit, called the Light Tight Oil (LTO) Project, enables the Pasadena refinery to process additional crude from the prolific Permian Basin. This oil-rich region in West Texas has been a major source of U.S. production, and the increased capacity at Pasadena will help Chevron better integrate its upstream and downstream operations. As part of the project, the refinery will also begin producing jet fuel and exporting gas oil, expanding its product offerings to meet diverse market needs.
The LTO Project, which received regulatory approval in 2022, began in 2019, with construction officially kicking off in early 2020. The goal was to modernize the facility’s infrastructure and optimize its capacity to refine lighter crude oils, which are increasingly in demand due to their lower production cost and higher quality. The Pasadena refinery is expected to play a vital role in Chevron’s efforts to integrate operations across the energy value chain, from crude extraction to product distribution.
Strategic Importance of Pasadena Acquisition and Expansion
Chevron acquired the Pasadena refinery from Petrobras America in 2019 for $350 million. At the time, the facility processed just over 110,000 bpd of crude. Since then, Chevron has made extensive upgrades, including the current retrofit. These upgrades are designed to boost output and adapt to shifting market demands. This expansion will help Chevron better meet domestic demand for refined products, especially as the U.S. energy sector transitions to include both traditional and renewable energy.
The expanded refinery will also support Chevron’s retail operations in the U.S. Gulf Coast. In this region, demand for refined products such as gasoline, diesel, and jet fuel remains strong. With the increased capacity, Chevron aims to strengthen its competitive position and enhance its integrated operations, which include oil extraction, refining, and marketing.
Phased Start-up and Long-term Goals
Chevron’s Pasadena refinery expansion is still in its early stages, with the phased start-up set to continue through Q1 2025. During this period, the refinery will undergo a series of tests to ensure that it meets product specifications and operational goals. Once fully operational, the expansion will position Chevron to better serve its customers and support U.S. energy infrastructure.
Chevron’s Pasadena facility, which is part of the refinery expansion, is one of five fully owned refineries in the U.S. The company’s other refineries are located in Richmond and El Segundo in California, Pascagoula in Mississippi, and Salt Lake City in Utah. The Pasadena refinery expansion is a key component of Chevron’s long-term refining strategy, which aims to enhance operational efficiency, expand capacity, and ensure the company remains a leading player in the energy sector.
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