Chevron Upgrades Pasadena Refinery, Supports US Gulf Coast Fuel Supply Growth

Chevron Corporation CVX shares are trading higher on Tuesday. The oil & gas giant completed a retrofit of its Pasadena, Texas refinery.

The upgrade enhances product flexibility and boosts the processing capacity for lighter crudes by nearly 15%, increasing it to 125,000 barrels per day.

Notably, Chevron acquired the Pasadena Refinery in 2019 to expand its Gulf Coast refining system.

The recent retrofit will enable the processing of more Permian Basin equity crude, increase product supply in the U.S. Gulf Coast, and enhance synergies with its Pascagoula refinery.

The Light Tight Oil Project focuses on improving facility reliability and safety, boosting domestic refined product supply, and introducing jet fuel production and gas oil exports.

Chevron began planning for the LTO Project in 2019, with work beginning in early 2020.

The phased start-up of the asset is expected to continue through first-quarter of 2025, as the project team ensures all plants are operating as planned and products meet specifications.

Last week, Chevron projected 2025 capital expenditure of $14.5 billion-$15.5 billion, focusing on U.S. upstream and carbon reduction projects.

Additionally, Chevron anticipates non-cash, after-tax charges of $0.4 to $0.6 billion in the fourth quarter related to impairments, asset sales, and other obligations.

Investors can gain exposure to CVX through the EA Series Trust Strive U.S. Energy ETF DRLL and the Westwood Salient Enhanced Energy Income ETF WEEI.

Price Action: CVX shares are up 0.95% at $158.57 at the last check Tuesday.

Read Next:

• Jim Cramer: Exxon Is ‘Overvalued’ Versus Rival Oil Giant, Avoid Lumen Technologies

Image via Shutterstock.