Hurricane worries prompt refiner Motiva to shift expansion plans: Report

June 4, 2018


Saudi Arabia-owned Motiva Enterprises says it’s not going to add processing capacity at its refinery in Port Arthur after all.

The company said the cause of the change is fallout from last summer’s Hurricane Harvey, which knocked out one-quarter of all US crude capacity for a short time.

The decision puts Motiva on a path to buy or build another refining plant in the United States, and is a significant and abrupt change in the refiner’s plans, Reuters reports.

Just two months ago, Motiva announced plans to add up to 90,000 barrels a day of processing capacity to it’s one US refinery, which is processing about 603,000 bpd.

Motiva, like other refiners hard-hit by inundating rains from Harvey, also is adding more pumps to remove water from the Port Arthur refinery to deal with future storms.

At ExxonMobil’s refinery in Beaumont, north of Port Arthur, the company is raising an existing 10-foot flood wall by four feet, said people familiar with its operations, Reuters reported Monday.