Marathon Petroleum Corp. (MPC) announced its 2025 capital spending outlook, highlighting high-return investments in its refining, marketing and midstream segments.
In refining, MPC plans continued investments at its Los Angeles, Galveston Bay and Robinson refineries, including both multi-year projects and shorter-term efforts aimed at margin enhancement and cost reduction.
In Los Angeles, MPC will invest $100 million in 2025 to integrate and modernize utility systems. The project is intended to improve reliability, increase energy efficiency and address regulatory requirements for emissions reductions at Southern California refineries. Completion is targeted for year-end 2025.
At the Robinson refinery, located in Robinson, Illinois, a project to increase flexibility for jet fuel production will see $150 million in capital spending in 2025 and an additional $50 million in 2026. The project is scheduled for completion by year-end 2026.
The Galveston Bay refinery in Texas City, Texas, will see the development of a 90,000 bpd high-pressure distillate hydrotreater to upgrade high-sulfur distillate to ultra-low sulfur diesel. MPC expects to spend $200 million in 2025 and $575 million across 2026 and 2027. The project is expected to be completed by year-end 2027.
In the Midstream segment, MPC’s subsidiary MPLX is expanding its Permian to Gulf Coast value chain, supporting long-haul pipeline growth and increasing processing capacity in the Permian and Marcellus basins.
MPLX announced the acquisition of the remaining 55% interest in BANGL for $715 million, resulting in 100% ownership of the pipeline system that transports natural gas liquids from the Permian to Gulf Coast markets. The deal is expected to close in July, pending customary conditions.
The firm also announced an FID on the Traverse Pipeline, a bi-directional pipeline with capacity of 1.75 bcf/d to transport natural gas along the Gulf Coast between Agua Dulce, California and Katy, Texas. The line is expected to enter service in 2027.
MPLX plans to increase its stake in the Matterhorn Express Pipeline JV by 5% for $151 million, bringing its total ownership to 10%. The pipeline, with 2.5 bcf/d of capacity, transports gas from the Permian to the Katy area. The transaction is expected to close in the second quarter of 2025.
In the San Juan basin, MPLX acquired crude and gas gathering systems from Whiptail Midstream for $237 million. The assets enhance supply to MPC’s refining systems.
Ongoing Midstream developments include two 150,000 bpd Gulf Coast fractionation facilities near the Galveston Bay refinery, expected in service in 2028 and 2029. MPC has committed to offtake from the facilities, which it plans to market globally.
A partnership with ONEOK will result in a 400,000 bpd LPG export terminal and pipeline, expected online in 2028.
MPLX is also expanding the BANGL Pipeline from 250,000 to 300,000 bpd, with completion expected in the second half of 2026. The pipeline will support supply to Gulf Coast fractionators.
The Blackcomb and Rio Bravo pipelines, designed to transport gas from the Permian to domestic and export markets, remain on track for in-service dates in the second half of 2026.
Gas processing capacity in the Permian will increase with the addition of the 200 mmcf/d Secretariat plant, expected online in the fourth quarter of 2025.
In the Northeast, the Harmon Creek III project will add a 300 mmcf/d processing plant and 40,000 bpd de-ethanizer. The complex is expected online in the second half of 2026 and will increase total processing capacity to 8.1 bcf/d and fractionation capacity to 800,000 bpd.
