Marathon Unit Sues BP Over Conditions at Texas City Refinery
A unit of Marathon Petroleum Corporation is suing two subsidiaries of BP plc over issues related to a refinery in Texas City, Texas, according to various news outlets. Marathon bought the refinery from BP in 2013 for roughly $2.4 billion.
Marathon alleges that conditions at the 459,000 barrel-per-day (BBL/d) refinery and three adjoining product terminals are far shoddier than had what had been agreed upon in the 2013 transaction. For example, according to Reuters, Marathon said in the lawsuit that BP planned to overhaul an aromatics recovery unit prior to the sale being complete, but did not do so after signing the sale agreement.
BP responded that it had spent billions of dollars in the years prior to the sale to upgrade the refinery, according to Reuters.
Industrial Info is tracking $378 million in active projects at the facility, including the proposed $200 million addition of a hydrotreater unit that would produce ultra-low sulfur diesel. For more details, including contact information, see Industrial Info's project report.
The refinery has a history of unsafe working conditions: In March 2005, an explosion killed 15 employees and injured 180 others. The federal government fined BP $84.6 million for safety rules violations later uncovered at the refinery.
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