Fluor has won a contract from Marathon Petroleum (MPC) for the implementation of the approximately $2bn South Texas Asset Repositioning (STAR) program at the Galveston Bay refinery in Texas.
Under the new contract, Fluor will execute the engineering and procurement scope of the STAR program, which has been designed to integrate MPC’s former refinery in Texas City into the nearby Galveston Bay refinery.
The financial terms of the contract weren’t disclosed by the Texas-based engineering company. Fluor said that it had booked the contract value into backlog in the first quarter of this year.
The STAR program is expected to boost the efficiency and reliability of the Galveston Bay refinery by expanding the residual oil processing capabilities, upgrading the crude unit and also through integration of facility logistics. The program is slated to be completed in 2022.
Fluor’s energy & chemicals Americas president Mark Fields said: “This project will continue the development of MPC’s Galveston Bay refinery into a world-class refining complex.
“Fluor and MPC have a proven track record of delivering similar programs, most recently in Detroit and Garyville, Louisiana. Fluor values its strong working relationship with MPC and is excited to be part of the STAR program.”
Since 2013, Fluor has been associated with the STAR program, conducting the feasibility studies and early engineering work.
Currently, the engineering firm is also delivering engineering, procurement and construction management services on reconfiguration at the Galveston Bay refinery under a contract awarded in April 2017.
The reconfiguration will enable the refinery to achieve the latest US Environmental Protection agency Tier 3 gasoline sulfur standards. Fluor’s scope in the contract includes a new unit, modernizing a number of existing units and modifying utilities and offsites.
According to Marathon Petroleum, the integration of the Galveston Bay and the Texas City refineries under the STAR program will result in a processing capacity of 611,000 barrels per calendar day and grow its residual oil processing capabilities to 142,000bpcd.