• 3 minutes Will Iron-Air batteries REALLY change things?
  • 7 minutes Natural gas mobility for heavy duty trucks
  • 11 minutes NordStream2
  • 9 mins GREEN NEW DEAL = BLIZZARD OF LIES
  • 6 hours Evergrande is going Belly Up.
  • 3 hours World’s Biggest Battery In California Overheats, Shuts Down
  • 15 hours U.S. Presidential Elections Status - Electoral Votes
  • 6 hours Monday 9/13 - "High Natural Gas Prices Today Will Send U.S. Production Soaring Next Year" by Irina Slav
  • 10 hours Poland Expands LNG Powered Trucking and Fueling Stations
  • 1 day And now, hybrid electric locomotives...
  • 16 hours Ozone layer destruction driving global warming
  • 1 day The unexpected loss of output from wind turbines compels UK to turn to an alternative; It's not what you think!
  • 15 hours The coming Cyber Attack
  • 15 hours Is the Republican Party going to perpetuate lies about the 2020 election and attempt to whitewash what happened on January 6th?
  • 18 hours 'Get A Loan,' Commerce Chief Tells Unpaid Federal Workers
  • 2 days The Painful Death of Coal

Marathon Petroleum To Idle Two Refineries Indefinitely

Marathon Petroleum will idle two refineries indefinitely, transforming them into a terminal and a renewable diesel facility, the company said in an update.

“On July 31, we informed employees at our Martinez and Gallup refineries that we will indefinitely idle these facilities with no plans to restart normal operations,” Marathon Petroleum said. “As part of these changes, Martinez will be converted to a terminal facility. We are also evaluating the strategic repositioning of Martinez to a renewable diesel facility, which aligns with California’s Low Carbon Fuel Standards objectives and MPC’s greenhouse gas reduction targets.”

The Martinez refinery has a capacity of 166,000 barrels per day, and the Gallup facility has a capacity of 26,000 bpd. Both were idled in April amid the slump in fuel demand resulting from the national lockdowns in most of the world in response to the coronavirus pandemic.

Even with the transformations, the move will mean layoffs, as “Indefinite idling unfortunately means most jobs at these refineries will no longer be necessary, and we expect to begin a phased reduction of staffing levels in October,” Marathon Petroleum said.

In a separate news report, Marathon Petroleum said it had struck a deal with 7-Eleven to sell its Speedway gas station chain for $21 billion. The company said it would pocket some $16.5 billion after the all-cash transaction, which it would use to strengthen its balance sheet and return capital to shareholders.

Refiners have been under a lot of pressure lately, with analysts warning there is too much refining capacity in the world given the latest trends in demand for fuels. Some of this capacity will need to close or transform as the outlook for demand remains pessimistic. Many refiners could go bankrupt unless they adjust to the new reality, Wood Mackenzie said in a recent report, noting that the more complex refineries would do better than the rest.

By Irina Slav for Oilprice.com

More Top Reads From Oilprice.com:



Join the discussion | Back to homepage



Leave a comment

Leave a comment

EXXON Mobil -0.35
Open57.81 Trading Vol.6.96M Previous Vol.241.7B
BUY 57.15
Sell 57.00
Oilprice - The No. 1 Source for Oil & Energy News