CITGO will invest $310 million to build new naphtha upgrading equipment at its Lake Charles refinery in Louisiana, industry publication Hydrocarbon Processing reported on September 1. The project, known as the Depentanizer Project, aims to convert lower-value streams into higher-value gasoline blending components, with startup targeted for 2029, it is reported.
The investment is reported to add new equipment to the naphtha processing unit at the Lake Charles refinery, converting streams previously processed at lower value into high-octane gasoline blending components. Through this, CITGO is said to be aiming to strengthen its competitiveness in the US transportation fuel market.
The investment is valued at $310 million, with startup targeted for 2029. Specific processing capacity and technology or licensor information have not been disclosed.
The US refining industry continues to invest in raising the share of higher-value products from existing refineries in response to shifting transportation fuel demand. CITGO’s latest investment is reported to reflect this broader industry trend.
Upgrade investments that convert lower-value streams at existing refineries into higher-value products represent a strategy that can improve profitability with relatively less capital than building new refineries, a trend likely to continue appearing in refining industry investment going forward.
Key points to watch include when specific equipment orders, including EPC contractor selection, and details such as processing capacity will be disclosed.