FINDLAY, Ohio, March 1, 2022 /PRNewswire/ -- Marathon
Petroleum Corp. (NYSE: MPC) today announced it has entered into
definitive agreements to form a joint venture with Neste for
Marathon's Martinez renewable
fuels project. The partnership will be structured as a 50/50 joint
venture with Neste expected to contribute a total of $1 billion, inclusive of half of the total
project development costs projected through the completion of the
project. MPC will continue to manage project execution and operate
the facility once construction is complete. The closing of the
joint venture is subject to customary closing conditions and
regulatory approvals, including obtaining the necessary permits,
which depend upon certification of a final Environmental Impact
Report.
This strategic partnership is expected to advance the current
project objectives of delivering low carbon intensity fuels to
support California's climate
goals. MPC and Neste will leverage their complementary core
competencies in the joint venture. MPC brings experience in
renewable diesel facility conversion, large capital project
execution, and operating expertise in the California market. Neste brings knowledge in
sustainable feedstock sourcing and in renewable liquid fuels
production. The joint venture reflects both partners' commitment to
obtain low carbon intensity feedstocks to achieve the project
objectives of providing fuels that meet the demand driven by the
Low Carbon Fuel Standard (LCFS).
"We're excited to partner with Neste as this strategic
partnership enhances our strong Martinez project by leveraging our
complementary strengths and expertise and is consistent with our
previously announced strategy to source low carbon intensity
feedstocks through long-term arrangements, joint ventures and
alliances. The project will utilize existing processing
infrastructure, diverse inbound and outbound logistics, and is
optimally located to support California's LCFS goals while strengthening
MPC's footprint in renewable fuels," said President and Chief
Executive Officer Michael J.
Hennigan. "Our partnership with Neste signals another step
in our commitment to the energy evolution and our focus on lowering
the carbon intensity of our operations and the products we
manufacture."
The Martinez facility is
currently targeted to have a production capacity of 260 million
gallons per year of renewable diesel in the second half of 2022,
with pretreatment capabilities to come online in 2023. The facility
is expected to be capable of producing 730 million gallons per year
by the end of 2023. Estimated total project costs for Martinez remain at approximately $1.2 billion. Both Neste and Marathon will be
responsible for raw material sourcing for the joint venture. The
production output will be split evenly between the joint venture
partners, and each partner will be responsible for marketing the
products under its own brand. The expected and targeted timelines
for achieving the production capacities outlined above are
dependent upon the timing of obtaining the necessary permits to
operate the facility.
About Marathon Petroleum Corporation
Marathon Petroleum Corporation (MPC) is a leading, integrated,
downstream energy company headquartered in Findlay, Ohio. The company operates the
nation's largest refining system. MPC's marketing system includes
branded locations across the United
States, including Marathon brand retail outlets. MPC also
owns the general partner and majority limited partner interest in
MPLX LP, a midstream company that owns and operates gathering,
processing, and fractionation assets, as well as crude oil and
light product transportation and logistics infrastructure. More
information is available at www.marathonpetroleum.com.
Investor Relations Contacts: (419)
421-2071
Kristina Kazarian,
Vice President
Brian Worthington, Manager
Kenan Kinsey, Analyst
Media Contact: (419) 421-3312
Jamal Kheiry,
Communications Manager
Forward-Looking Statements
This press release contains forward-looking statements
regarding Marathon Petroleum Corporation ("MPC"). These
forward-looking statements relate to, among other things,
expectations, estimates and projections concerning the business and
operations of MPC, including the transaction announced herein and
its environmental, social and governance goals. You can identify
forward-looking statements by words such as "anticipate,"
"believe," "commitment," "could," "design," "estimate," "expect,"
"forecast," "goal," "guidance," "imply," "intend," "may,"
"objective," "opportunity," "outlook," "plan," "policy,"
"position," "potential," "predict," "priority," "project,"
"proposition," "prospective," "pursue," "seek," "should,"
"strategy," "target," "will," "would" or other similar expressions
that convey the uncertainty of future events or outcomes. MPC
cautions that these statements are based on management's current
knowledge and expectations and are subject to certain risks and
uncertainties, many of which are outside of the control of MPC,
that could cause actual results or events to differ materially from
the statements made herein. Factors that could cause actual results
or events to differ materially from those implied in the
forward-looking statements include: the time, costs and
ability to obtain regulatory or other approvals and consents, for
the joint venture announced herein and the project, including the
certification of a final Environmental Impact Report; the ability
to satisfy the other conditions, necessary to consummate the joint
venture announced herein within the expected timeframe if at all;
the ability to reach the expected production capacities of the
project within the expected time frames if at all; the ability to
complete the project for the previously disclosed estimated total
project cost; and the factors set forth under the heading "Risk
Factors" in MPC's Annual Reports on Form 10-K for the year ended
Dec. 31, 2021, and in other filings
with the Securities and Exchange Commission (SEC). Any
forward-looking statement speaks only as of the date of the
applicable communication and we undertake no obligation to update
any forward-looking statement except to the extent required by
applicable law. Copies of MPC's Annual Report on Form 10-K
and other SEC filings are available on the SEC's website, MPC's
website at https://www.marathonpetroleum.com/Investors/ or by
contacting MPC's Investor Relations office.
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SOURCE Marathon Petroleum Corporation