Marathon Petroleum plans to close two refineries in the United States
Marathon Petroleum recently announced it will indefinitely idle refining operations at its Martinez and Gallup refineries in California and New Mexico, respectively. The pandemic driven drop in fuel demand is the primary driver behind these decisions.
Both refineries had been temporarily idled in April due to demand drops, and Marathon has chosen to keep them shut in and begin personnel layoffs in October. Marathon added that these closures would not cause any supply disruptions and the company will continue to meet its customer commitments.
The 161,000 bpd Martinez refinery will be converted into an oil storage facility with an eye towards the production of renewable diesel as the company continues to align with California's Low Carbon Fuel Standards objectives and the company’s own greenhouse gas reduction plans. As for the 26,000 bpd Gallup refinery in New Mexico, Marathon intends to close the facility altogether.
The closing of refining operations at these facilities is expected to help Marathon meet its previously announced expense reductions of $950 million for this year.
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From the April 2018 issue of Hydrocarbon Processing