MPLX’s Wood River Pipeline Terminal in Wood River, Ill., is an element of the company’s commitment to crude oil logistics. The first phase of expansion of its Ozark and Wood River-to-Patoka crude pipeline systems—both with capacity of 360,000 barrels per day—has been completed. Source: Marathon Petroleum Corp.
Already the largest processor in the Northeast, MPLX LP is set to make a much larger impact in the Permian Basin. This growth strategy will be supported by the recently-announced merger of MPLX’s general partner, Marathon Petroleum Corp., with Andeavor in the second-half 2018.
This deal will help to create a company with a large and geographically diverse foothold in the refining, marketing and midstream sectors. Once the merger is completed, Marathon will become the largest refiner in the country by throughput capacity with more than 3 million barrels per day (bbl/d) by adding Andeavor’s refineries in California, the midcontinent and the Pacific Northwest to its refineries along the Gulf Coast and in the Midwest.
Marathon’s marketing and retail division also stands to benefit from the merger by creating a national platform through the combination of its portfolio on the East Coast and Midwest with Andeavor’s assets in the western half of the U.S.