Motiva Enterprises is planning to integrate its Norco and Convent refineries to create the Louisiana Refining System.
The first step includes the construction of the Maurepas pipeline system, which features three pipelines that will be built, owned and operated by affiliates of SemGroup.
The Maurepas crude pipeline will link the existing LOCAP terminal in St. James, Louisiana to the Norco refinery through a 34-mile pipeline.
Motiva said the pipelines between the two refineries will optimise both plants’ conversion units and improve logistics efficiency, alleviate dock congestion and allow further product exports.
Motiva Enterprises president and CEO Dan Romasko said: "At 620,000 barrels per day, our Port Arthur refinery is already the largest refinery in North America and benefits from this scale and efficiency.
"With an integrated crude capacity over 500,000 barrels per day, our Louisiana Refining System will rank in the top five of North American refineries in capacity and deliver significant value to Motiva’s portfolio."
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By GlobalDataOnce the pipelines are completed, Motiva plans to idle the fluid catalytic cracker at its Convent refinery.
The hydrocracker unit at Norco will be reconfigured to process 30,000 barrels per day of additional gas oil into high-quality diesel.
Shell and Saudi Aramco each own 50% of Motiva, which has three refineries in the US Gulf Coast region with a combined capacity of over 1.1 million barrels per day.
Motiva refines, distributes and markets fuels and petroleum products in the eastern and Gulf Coast regions of the US.