Chevron's new $1.4B base oil plant up and running

PASCAGOULA, MS (WLOX) - Chevron will now become the world's largest producer of premium base oil with the help of the new $1.4 billion Pascagoula Base Oil project up and running.

Chevron's Pascagoula Refinery is expanding its services across the globe with the new billion dollar Pascagoula Base Oil Project. Refinery Manager Bruce Chinn said the project has been in the making since 2011 when the company hired more than 2,000 contractors to build the plant.

"It took three years, took a good three years, to get the project completed and we are looking forward to the project. The base oil will bring diversity to our product mix here at the refinery and add another base oil plant in Chevron's portfolio of base oil plants around the world," said Chinn.

Base oil is the main ingredient in the production of greases and lubricants. It's also in top-tier motor oil, which helps improve fuel economy and much more.

"The base oil will go from here primarily to Latin America, the U.S. east coast area and Europe," Public and Governmental Affairs Manager Alan Sudduth said.

Although construction is complete, Chevron officials said they are not at full production capacity just yet.

"The Chevron Base Oil Project will produce 25,000 barrels per day of premium base oil. We will be Chevron's largest base oil plant in our portfolio," said Chinn.

Chevron officials said the new plant is also expected to create at least 20 permanent jobs and help continue sustainability for the Pascagoula Refinery.

"Chevron has been around for 50 years making fuels and petrochemicals, and because of that we have been able to provide good jobs for the community and a good sound tax base. With the addition of the base oil project, we are confident a new line of product that is needed in America and around the world is going to add to that, so the refinery will continue to be around here and continue to provide those good jobs," Sudduth said.

Currently, Chevron manufactures base oil in Richmond, California and South Korea. This new plant will help double the company's production.

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