CITGO Petroleum Corporation has approved a $310 million investment to add depentanization and naphtha-upgrading facilities at its Lake Charles Refinery in Louisiana, the company announced on September 1, 2026.

The project will add new processing equipment that can convert lower-value refinery streams into higher-value gasoline blend components. CITGO expects the upgraded facilities to begin operations in 2029, adding processing flexibility within the existing refinery complex.

The September 1 investment decision marks the latest development for the previously announced project. CITGO had deferred its final investment decision in August while reviewing its capital spending plans. With funding now approved, the company plans to proceed with engineering, construction and commissioning activities.

$310M investment targets naphtha upgrading

The $310 million investment will fund new facilities and equipment for the refinery’s depentanization process. The project will improve the refinery’s ability to upgrade naphtha streams and convert lower-value material into components that can support gasoline production.

The new processing system will also support CITGO’s ability to process domestic light crude and produce additional gasoline blend components.

Rather than creating a separate refining facility, the project will add new processing capabilities within the existing Lake Charles Refinery.

Lake Charles refinery provides project base

The Lake Charles Refinery began operations in 1944 and now has crude-processing capacity of approximately 479,000 barrels per day. CITGO operates the refinery along the Calcasieu Ship Channel, where established infrastructure supports crude deliveries and refined-product movements.

The depentanizer project will use this existing refinery complex as the base for the new processing facilities. Its scope focuses on upgrading refinery streams rather than expanding the site into a new standalone refinery.

Project targets 2029 operations

CITGO expects the new facilities to enter service in 2029. Engineering, construction and commissioning work will take place before the project reaches commercial operation.

The September 1 investment approval does not confirm that full construction has started. CITGO has announced the capital decision and the planned 2029 operating date, but it has not disclosed a confirmed full-construction start date.

The project therefore moves into its next development phase following the investment approval, with engineering and construction activities now set to progress toward the planned 2029 startup.

Lake Charles Refinery Depentanizer Project: Factsheet

• Location: Lake Charles, Louisiana
• Developer/operator: CITGO Petroleum Corporation
• Investment: $310 million
• Latest development: CITGO approved the project investment on September 1, 2026
• Investment purpose: Add depentanization and naphtha-upgrading facilities
• Processing objective: Convert lower-value refinery streams into higher-value gasoline blend components
• Additional capability: Support processing of domestic light crude
• Existing refinery capacity: Approximately 479,000 barrels per day
• Expected operation: 2029
• Construction start: Not confirmed

Related U.S. refining project

The CITGO project is part of a broader wave of investment in U.S. refining infrastructure. In Texas, the Brownsville Refinery Project is taking a different development route, with America First Refining pursuing engineering work for a proposed storage tank farm at the planned Port of Brownsville refinery. The proposed facility would process about 60 million barrels of domestic crude annually into products including diesel, jet fuel and specialized gasoline, but it remains in development and has not yet reached a confirmed Final Investment Decision.