Chevron Refinery upgrades
Utility regulators are approving a plan for Mississippi Power Company to upgrade facilities at a Gulf Coast oil refinery that is its largest customer.
The Mississippi Public Service Commission voted unanimously Tuesday to allow the electric utility to renew a 20-year contract with Chevron Corp’s Pascagoula refinery.
As part of the agreement, Chevron will pay an estimated $52.6 million to the unit of Atlanta-based Southern Company to replace two steam-generating units that the refinery uses to break down oil into gasoline and other petrochemicals.
Mississippi Power generates some of the electricity that it supplies to Chevron using the steam. Work is expected to start in late 2019 and take a year.
Staff members advise that Mississippi Power is expected to earn a profit from the work, enhancing its overall business.