CITGO Petroleum has announced a $310m investment to upgrade its Lake Charles Refinery in south-west Louisiana, US.
The company will implement the Depentanizer Project to increase the refinery’s naphtha upgrading capabilities by converting lower-value streams into components for gasoline blending.
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After completion, the project is expected to improve refinery operational flexibility and strengthen CITGO’s capacity to supply dependable transportation fuels to meet ongoing US demand.
CITGO expects the construction of new facilities and installation of additional equipment to reinforce the long-term future of the Lake Charles site.
The investment is also projected to benefit the local economy by supporting current jobs at the refinery and generating additional contract work during the construction phase.
The company has indicated that local suppliers and service providers could see increased opportunities as part of the project.
According to CITGO, the Depentanizer Project is designed to build on the refinery’s current asset base by increasing its ability to process domestic light crude oil and manufacture more gasoline blendstocks.
The project is scheduled for completion and operational start-up in 2029.
CITGO Lake Charles Refinery vice-president and general manager Sterling Neblett said: “For generations, the Lake Charles Refinery has helped power south-west Louisiana’s economy and identity. This project reflects our confidence in the refinery’s future and our commitment to supporting the people, businesses and communities connected to its success.”
The Lake Charles Refinery, which began operations in 1944, is said to be the largest facility in CITGO’s refining portfolio.
It was established to produce aviation fuel for the US during the Second World War. Since then, it has expanded operations to produce gasoline, diesel, jet fuel and petrochemicals for various markets.
The facility’s strategic location along the Calcasieu Ship Channel allows it to process a wide range of crude oils and distribute refined products through various transport channels.
CITGO executive vice-president and chief operating officer Edgar Rincon said: “The Depentanizer Project reflects CITGO’s commitment to disciplined investments that enhance the strength and resilience of our refining system. It also reinforces the strategic importance of the Lake Charles Refinery to our company, our customers and the broader US energy market.”
CITGO operates two more refineries in Lemont, Illinois and Corpus Christi, Texas.
The company also wholly and or jointly owns 43 active terminals, eight pipelines, and three lubricant blending and packaging plants.
Its refineries have a combined crude processing capacity of roughly 829,000 barrels per day.
