| Shell Deer Park Completes Major Refinery Expansion
Park, Texas (May 2, 2001) – The Shell Deer Park refinery recently completed
a major expansion project, culminating in the successful April start-up as the
fifth largest refinery in the United States with a crude oil capacity of 340,000
barrels a day.
The refinery operates as Deer Park Refining Limited Partnership, a 50-50 joint
venture formed in 1993 between Shell Oil Company and Petroleos Mexicanos
(Pemex). At that time, the refinery processed approximately 230,000 barrels a
day of crude oil.
Over the past eight years, the partnership invested more than $1 billion for
refinery upgrades, enabling Shell Deer Park to significantly increase capacity
and convert from a refiner of light, low-sulfur “sweet” crude oil to less
expensive heavy, high-sulfur "sour" crude oil.
The refinery now is positioned to become the premier heavy sour crude oil
refining company in the United States.
Pemex supplies more than 200,000 barrels a day of Maya crude from Mexico to the
refinery, where it is processed into refined products and sold throughout North
America. The balance of crude oil is domestic, mostly from Texas and Louisiana.
"Shell Deer Park has been on a journey since formation of the partnership…our
survival as a viable refinery was in question," said Stacy Methvin, President
and CEO of Deer Park Refining Company. "The shared vision of the Shell-Pemex
partnership was to combine a reliable supply of heavy sour crude with upgraded
refinery assets and world-class people. The vision has become reality."
The scope of work during the latest project phase, known as Maya II, included:
Expansion of the Delayed Coker to 85,000 barrels a day from 63,000
barrels a day. The coker converts petroleum pitch into petroleum coke and gas
oils for processing into higher value diesel fuel and gasoline.
A 70,000 barrels-a-day capacity increase in one of two crude oil
Distilling units. This process heats crude oil to the boiling point.
Hydrocarbons vaporize at different temperatures and then cool into liquids such
as propane, gasoline and home heating oil.
Construction of a 35,000 barrels-a-day Vacuum Flasher. Vacuum
flashing is a technique to continue distillation of crude oil at high
temperatures.
Construction of a Sulfur Plant with a capacity of 270 tons a day. The
plant recovers sulfur from refinery hydrocarbon “streams” as elemental sulfur
for sale as end-use products.
Modifications to the Distillate Hydrotreater, which removes sulfur and
other contaminants from hydrocarbon streams.
At the peak of Maya II expansion activity, as many as 1,500 contract
construction workers amassed 3.5 million hours in the field without incurring a
single lost-time injury or environmental incident -- world-class performances.
In addition to safety and environmental achievements, Maya II also was
noteworthy for the materials that were used; for example, 3,000 truckloads of
concrete, 3,800 tons of structural steel, 250,000 feet of pipe, and 750,000 feet
of electrical cable. Two new drums for the Delayed Coker each measure 28 feet
in diameter, 122 feet long and weigh 317 tons.
A commemorative event held at Shell Deer Park on April 26 acknowledged the
conclusion of Maya II and beginning of what is expected to be a long and
profitable future.
Among the dignitaries at the ceremony were Steve Miller, Chairman, President and
Chief Executive Officer of Shell Oil Company; Raul Munoz Leos, General Director
of Pemex; Eduardo Martinez del Rio, General Director of P.M.I. Comercio
Internacional, S.A. de C.V.; Bernardo de la Garza, President of PMI Holdings
North America, Inc.; Methvin; Dan Burt, Vice President Major Projects of Deer
Park Refining Services; and Wayne Riddle, Mayor of Deer Park, who presented keys
to the city to Miller and Munoz Leos.
In his remarks to the Maya II leadership team, Munoz Leos praised the
people of the Shell-Pemex partnership who worked together in a project that
exceeded his expectations. "The challenge for us now," Munoz Leos said, "is to
look for more opportunities for success." |
