Chevron Pasadena Refinery upgrade boosts capacity and flexibility

Chevron U.S.A., Inc., a subsidiary of Chevron Corporation, has announced the completion of significant upgrades to its Pasadena Refinery in Texas, enhancing its ability to process lighter crudes and bolstering its product range. The project increases the facility’s capacity by nearly 15%, enabling it to process up to 125,000 barrels per day (bpd) of crude oil.

Acquired by Chevron in 2019, the Pasadena Refinery forms a vital component of the company’s Gulf Coast refining strategy. The upgrades, part of the Light Tight Oil (LTO) Project, will integrate operations across Chevron’s refining network, particularly with the Pascagoula refinery, and facilitate greater processing of crude oil sourced from the Permian Basin.

Chevron’s operations in the Permian Basin have seen significant growth in recent years. In the fourth quarter of 2023, the company achieved a record production level of 867,000 barrels of oil equivalent per day (boe/d) in this region.  Looking ahead, Chevron aims to increase its Permian output to approximately 900,000 boe/d by the end of 2024 and reach 1 million boe/d by 2025. 

The enhanced refinery facility will produce additional refined products for domestic supply, including jet fuel, and export gas oil to international markets. Chevron Manufacturing President Chris Cavote highlighted the refinery’s strategic importance: “This refinery now firmly integrates our upstream and downstream businesses as we aim to optimise the value chain.”

Planning for the LTO Project began in 2019, with construction commencing in 2020. The initiative recorded over four million work hours, demonstrating Chevron’s commitment to safety and operational excellence. Refinery General Manager Tifanie Steele stated, “We are investing in the refinery to help it be successful in the long-term, which we hope will support continuing positive economic impact to our community.”

The phased start-up of the upgraded facility will continue through the first quarter of 2025, as Chevron completes operational tests and ensures all products meet specifications.

The Pasadena Refinery in Texas was previously owned by Petrobras America Inc., a subsidiary of the Brazilian state-controlled oil company Petrobras. Chevron acquired the refinery in 2019 as part of a strategic move to expand its Gulf Coast refining operations. The acquisition was completed for approximately USD350 million, which included the purchase of the refinery and related infrastructure, including a marine terminal, storage tanks, and pipeline connections. This acquisition allowed Chevron to integrate the Pasadena Refinery into its operations, leveraging synergies with its existing refining system, such as the Pascagoula Refinery, and to process more crude oil from its equity production in the Permian Basin.

The refinery has a long and storied history that reflects the evolution of the refining industry in the United States. The Pasadena Refinery was originally established in 1920 by the Crown Central Petroleum Corporation, a Maryland-based company. It served as one of the early refining facilities on the Texas Gulf Coast. Over the decades, the refinery underwent various upgrades to meet increasing demand for refined petroleum products and adapt to evolving industry standards. In 2006, Petrobras America Inc. acquired the Pasadena Refinery for approximately USD360 million, reflecting its ambition to expand its downstream operations in the U.S. Petrobras invested significantly in the facility, including a reported USD1.18 billion in upgrades, to increase capacity and modernise the infrastructure. However, the acquisition became controversial due to the high costs and alleged irregularities in the purchase process, leading to investigations into corporate governance at Petrobras.

Chevron operates five refineries in the United States, with a combined capacity exceeding 1 million barrels per day. These facilities play a crucial role in Chevron’s operations, enabling the company to supply a diverse range of petroleum products across various markets. 

1. Pascagoula, Mississippi: This is Chevron’s largest refinery, with an operable capacity of approximately 350,000 bpd. 

2. El Segundo, California: Located near Los Angeles, this refinery has a capacity of about 270,000 bpd.

3. Richmond, California: Situated in the San Francisco Bay Area, the Richmond refinery processes around 250,000 bpd.

4. Pasadena, Texas: Following a recent retrofit, the Pasadena refinery’s capacity increased by nearly 15%, bringing it to 125,000 bpd.

5. Salt Lake City, Utah: This refinery has a processing capacity of approximately 45,000 bpd.