Chevron completes $1.4B base oil facility

Oil-Refinery-Pump-ImagePASCAGOULA — Chevron Corp.’s Pascagoula Refinery says construction on a new $1.4 billion base oil facility is complete.

The Sun Herald reports the company expects to reach full production capability by midsummer. The oils are used to make lubricants, motor oils, hand cleaners, agricultural sprays and greases.

“At that time, we’ll be considered the largest producer of premium base oils in the world,” Chevron spokesman Alan Sudduth said.

The project has added 20 to 25 permanent employees at the 1,500-worker refinery, and the company has said more than 2,800 contractors were working on construction.

Chevron began construction on base oil facilities in 2011 and plans to produce 25,000 barrels a day, doubling its worldwide production. Its refineries in South Korea and Richmond, California, together produce 25,000 barrels.

Sudduth said the base oil produced in Pascagoula will be identical to that produced in South Korea and Richmond.

“They will be interchangeable,” he said. “Wherever you get it, it will be the same consistency, the same product.”

The company has touted its investment in base oils and lubricants, saying Chevron has a large portfolio in a highly profitable business.

It’s a third product line for the Pascagoula refinery, which produces 330,000 barrels a day of fuels for jets and cars, as well as chemicals for plastics and textiles.

The project included both adapting structures and new construction at the refinery. The 3,000-acre complex in Pascagoula is the largest refinery in North America for California-based Chevron.

The base oils will be shipped from the Port of Pascagoula by barge and ship. The products will go to Latin America, Europe, Africa and other parts of the United States. Chevron also serves Asian markets.

 

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