Chevron hopes for second U.S. Gulf refinery at Houston Ship Channel

|About: Chevron Corporation (CVX)|By:, SA News Editor

Chevron (NYSE:CVX) wants to build or buy a refinery along the U.S. Gulf Coast to process crude oil from its growing Permian Basin operations, says the company's head of downstream and chemicals.

CVX would like to have refining operations on the Houston Ship Channel to complement an existing eastern Gulf refinery in Mississippi that makes lubricants and other materials, Pierre Breber said today at the Oil & Money conference in London.

CVX’s Permian production jumped 51% in Q2 to 270K boe/day, and by expanding its refining capacity to Houston, the company would be able to process its Permian crude closer to where it is produced; most of the company’s refineries are in California and use a heavier type of crude than the light, sweet kind pumped from Permian shale wells.

Separately, Berber said shipments to CVX’s existing Mississippi refinery from Venezuela have fallen 25% to 75K bbl/day over the last two years; CVX is the only remaining major U.S. oil producer in Venezuela.

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