press release

Chevron Seeks Permit for Refinery Expansion to Increase U.S. Gasoline Production

PASCAGOULA, Miss., Nov. 13, 2006 -- Chevron U.S.A. Inc. today announced it has submitted an environmental permit application to the Mississippi Department of Environmental Quality for the construction of a major gasoline production unit, along with other minor units, at its refinery in Pascagoula, Miss., that could potentially further increase gasoline production at the refinery by roughly 15 percent.

According to refinery General Manager Roland Kell, the new Continuous Catalyst Regeneration (CCR) unit would update important refinery technology by replacing two process units constructed more than 30 years ago. "The CCR project would increase the Pascagoula Refinery's ability to provide reliable supplies of gasoline to key markets in the eastern United States," Kell said.

Chevron has contracted WorleyParsons to complete engineering for the CCR project, Kell said, and if approved, project construction would likely begin sometime during the first quarter of 2008.

Chevron's environmental permit application also includes several smaller projects that would optimize the refinery by increasing equipment reliability and availability. Together with the CCR, these projects could increase the refinery's gasoline production by approximately 750,000 gallons per day. Neither the CCR project nor the smaller projects would increase the refinery's crude oil capacity.

Environmental permitting will run concurrently with Chevron's evaluation process to ensure all information is in place when Chevron decides whether or not to move forward with the CCR and the other projects.

"We plan to utilize appropriate air emission controls, installing Best Available Control Technology as required by the environmental authorities," Kell said. "We are also proposing to voluntarily reduce certain emissions over and above current requirements."

Meetings to discuss these plans are currently being organized with community groups. "As always, Chevron will continue its open dialogue with the community, understanding that these communications are an important part of the decision-making process," Kell said.

In the meantime, Chevron is executing other projects to increase gasoline supplies to U.S. consumers. An upgrade to the Pascagoula Refinery's Fluid Catalytic Cracking unit remains on track to be completed by the end of 2006 and will increase the refinery's gasoline production by roughly 10 percent to about 5.5 million gallons a day. This project, along with one completed earlier this year at the company's refinery in El Segundo, Calif., will collectively bring online for Chevron about 1 million gallons per day of additional gasoline manufacturing capacity – a 7 percent increase relative to the company's total U.S. refinery gasoline production in 2005.

Chevron is continuing to evaluate other potential opportunities to enhance further the competitive position of the Pascagoula Refinery.

Chevron can process more than 2 million barrels per day of crude oil through its share of 19 wholly owned or joint-venture fuel refineries and one asphalt plant, and markets motor fuels through its more than 25,000 retail outlets worldwide under the Chevron®, Texaco® or Caltex™ brands. The Pascagoula Refinery is Chevron's largest wholly owned petroleum refinery, processing an average of 330,000 barrels of crude oil per day and producing a variety of transportation fuels and other refined products.

Chevron U.S.A Inc. is a wholly owned subsidiary of Chevron Corp., one of the world's leading energy companies. With more than 55,000 employees, Chevron conducts business in approximately 180 countries around the world, producing and transporting crude oil and natural gas, and marketing and distributing fuels and other energy products. Chevron is based in San Ramon, Calif. More information on Chevron is available at


This press release contains forward-looking statements about Chevron's plans at the Pascagoula Refinery in Mississippi. The statements are based on management's current expectations, estimates and projections; are not guarantees of future performance; and are subject to certain risks, uncertainties and other factors, some of which are beyond the company's control and are difficult to predict. Among the factors that could cause actual results to differ materially are timing of the construction and commencement of the operation of the planned facilities; future supply and demand for refined products; the competitiveness of alternate product substitutes; and local and general economic conditions. You should not place undue reliance on these forward-looking statements, which speak only as of the date of this press release. Unless legally required, Chevron undertakes no obligation to update publicly any forward-looking statements, whether as a result of new information, future events or otherwise.

Published: November 2006