Chevron to build lubricants plant on Coast

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Published: January 31,2011

Tags: construction, energy, manufacturing, oil and gas, petroleum

PASCAGOULA — Chevron Corporation announced that Chevron Lubricants would commence construction of a lubricants manufacturing facility at the company’s Pascagoula refinery.

The $1.4-billion Pascagoula Base Oil Project (PBOP) is projected to generate approximately 1,000 jobs over the next two years of construction and about 20 permanent positions once the facility is operating.

The facility will manufacture 25,000 barrels per day of premium base oil, the main ingredient in the production of top-tier motor oil that helps improve fuel economy, lower tail-pipe emissions and extend the time between oil changes.

Construction is scheduled to be completed by year-end 2013.

PBOP will roughly double Chevron’s premium base oil production. The company currently manufactures premium base oil at its refinery in Richmond, Calif., and a joint venture facility in Yeosu, Korea. Premium base oil produced in Pascagoula is intended to serve markets in North America, Latin America and Europe. In addition to motor oil, base oil is also used to make lubricants for high-tech machinery and equipment used in the commercial and industrial sectors of the economy.

As Chevron’s largest wholly-owned refinery, the Pascagoula facility has a work force of 1,610 and processes up to 330,000 barrels per day of crude oil to produce gasoline, jet fuel, diesel and other products. The refinery began operating in 1963.

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