FINDLAY,
Ohio, Sept. 21, 2022 /PRNewswire/
-- Marathon Petroleum Corp. (NYSE: MPC) today announced the
closing of its joint venture with Neste for the Martinez renewables project. All required
closing conditions have been met, including the receipt of the
necessary permits and regulatory approvals.
The partnership, to be called Martinez Renewables, is structured
as a 50/50 joint venture, with Neste to contribute a total of
$1 billion, inclusive of half of the
total project development costs projected at $1.2 billion through the completion of the
project. MPC will continue to manage the completion of the
conversion project and will operate the facility once construction
is complete. The annual feedstock supply requirements are split
between the joint venture partners, which include specific
commitments to supply advantaged feedstocks. The annual production
output will be shared evenly between the joint venture partners,
and each partner will have the ability to market its share of the
products. The JV, being optimally located to strengthen both
partners' footprint in renewable fuels, will utilize existing
processing infrastructure and diverse inbound and outbound
logistics.
"This transaction reflects MPC's commitment to provide low
carbon-intensity feedstocks to support California's Low Carbon Fuel Standard goals.
We expect the partnership to improve the overall economics of the
project through the improved procurement of advantaged feedstock,"
said President and Chief Executive Officer Michael J. Hennigan. "This strategic partnership
also creates a platform for additional collaboration within
renewables. We believe there will be opportunities to leverage the
differentiated knowledge and capabilities of two industry leaders
as we pursue our shared commitment to the energy evolution and goal
of leading in sustainable energy."
The first phase of the Martinez
renewables project facility is currently targeted to be
mechanically complete by year-end 2022. Initial production capacity
is expected to be 260 million gallons per year of renewable fuels.
Pretreatment capabilities are expected to come online in the second
half of 2023 and the facility is expected to be capable of
producing 730 million gallons per year by the end of 2023.
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 MPC. These forward-looking statements relate to, among
other things, MPC's expectations, estimates and projections
concerning its business and operations, financial priorities,
strategic plans and initiatives, capital return plans, operating
cost and capital expenditure reduction objectives and
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 ability to complete
the Martinez renewables project
and reach the expected production capacities of the project within
the expected time frames if at all; the ability to complete the
project for the estimated total project cost; the availability of
advantaged feedstocks; 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