Expansion approved: Motiva Port Arthur to become largest refinery in nation

The SE Texas Record Sep. 21, 2007, 3:31am

News release from Motiva Enterprises

Houston, Texas – Sept. 21, 2007 - Motiva Enterprises LLC announced that its owners authorized the company to proceed with a 325,000 barrel-per-day (b/d) capacity expansion at its Port Arthur, Texas refinery. The expansion will increase the refinery's crude oil throughput capacity to 600,000 b/d, making it the largest refinery in the U.S. and one of the largest in the world.

"The expansion is designed to strengthen our nation's supply of gasoline, diesel, aviation fuels and high quality base oils," said William B. Welte, Motiva President and Chief Executive Officer. "As the demand for a variety of fuels continues to grow, Motiva is committed to being the supplier of choice in the eastern and southern U.S. for conventional fuels as well as biofuels."

The 325,000 b/d expansion at Port Arthur is equivalent to building the first new refinery in the U.S. in more than 30 years. The new production capacity is expected to be online in 2010 and will increase Motiva's supply of Shell-branded fuels to the company's wholesale and direct supply markets.

Motiva's expansion will lower most types of emissions from refinery operations on a per barrel basis by utilizing advanced technology in all new system installations and replacing existing systems. The expansion of the refinery will decrease emissions from present day levels for ozone precursors, specifically nitrogen oxides and volatile organic compounds.

Motiva awarded a contract to Bechtel/Jacobs Joint Venture to manage the expansion project as the engineering, procurement and construction contractor. Coupled with Motiva's dedication to the environment and health of its workforce, the Bechtel/Jacobs Joint Venture will mandate stringent safety practices throughout the construction project.

The expansion is projected to generate more than 4,500 construction jobs and about 300 new full-time jobs upon completion. Motiva is working with the Texas Work Force Commission, Southeast Texas Workforce Development Board, Lamar State College – Port Arthur, represented work groups, vocational institutions and local school systems to recruit and train qualified members of the workforce to take full advantage of the job opportunities. Many local sub-contractors have already been hired for the project.

Headquartered in Houston, Texas, Motiva Enterprises LLC is a refining and marketing joint venture owned by affiliates of Shell and Saudi Aramco. Motiva's marketing operations support a network of nearly 7,700 Shell-branded gasoline stations in the eastern and southern United States. Company assets include three refineries located in Norco, Louisiana; Convent, Louisiana, and Port Arthur, Texas, currently capable of refining approximately 740,000 barrels per day, and ownership or partial interests in 41 product terminals.

More information is available at www.motivaenterprises.com.

More News