Gulf refineries bet big on Mex-SA

U.S. refiners are betting that big exports to Mexico and South America will help alleviate high product inventories and boost margins as summer nears. The first wave of earnings results from several large independent refineries show they are not chasing gasoline profits, but taking advantage of demand from Mexico and South America, where refineries can’t keep up with customer demands. Marathon Petroleum Corp., which has completed its largest-ever quarter of turnaround projects at its three Gulf Coast refineries, expects to process more crude than ever in the second quarter. "The export book continues to be strong," CEO Gary Heminger said, and expects exports to grow from an additional 100K bpd (to 300K) in the second quarter. U.S. refiners, particularly on the Gulf Coast, have cashed in on soaring demand for refined products from Mexico, even as margins have languished at the lowest levels in seven years. (Source: Marine Link 04/28/17) Gulf Coast Note: Marathon has a refinery on about 3,500 acres along the Mississippi River at Garyville, La. - located between Baton Rouge and New Orleans.