HOUSTON (Connect Daily Texas) – February 1, 2019 – Two of the nation’s largest oil companies are doubling down on Texas, pouring billions of dollars into refineries.
Chevron USA Inc. has inked an agreement with Petrobras America Inc. to acquire Pasadena Refining Systems Inc. for $350 million. The deal includes all outstanding shares and equity interests, as well as the 192-acre refinery in Pasadena, TX, located on the Houston Ship Channel. The refinery (pictured above) marks Chevron’s first in the Lone Star State.
Meanwhile, Exxon Mobil announced it will begin construction on an expansion of its Beaumont refinery that will make the facility the largest refinery in the nation. The Irving, TX-based company plans to increase the refinery’s capacity by 250,000 barrels per day, or roughly 65%.
Exxon Mobil expects to create 1,850 jobs during construction of the expansion, and add 40 to 60 jobs in the area once it is complete in 2022. At that time, the refinery will be able to process more barrels of crude oil than any refinery in the United States.
“The Gulf Coast is a really good area for refining in general,” said Matthew Blair, head of refiners research at Tudor, Pickering, Holt & Co. “It’s one of the most cost advantageous locations for refineries in the world.”