Shell says can do Port Arthur expansion on budget

LONDON (Reuters) - Oil giant Royal Dutch Shell (RDSa.L) on Friday expressed confidence it could complete the expansion of its Motiva Refinery in Port Arthur, Texas, within the budgeted $7 billion (3.5 billion pounds) and on time.

Rob Routs, the head of Shell's downstream operations told reporters that the group had delayed a decision on the refinery's expansion so that it could have a "firm grip on the capital estimate and timing" of the project.

"We are now confident that we can deliver this project at the $7 billion level and in the time frame -- by 2010," Routs said.

The Motiva Refinery at Port Arthur in Texas is owned by Shell jointly with its Saudi partner, Saudi Refining.

The expansion is expected to increase the refinery's crude oil throughput capacity to 600,000 barrels per day (bpd), making it the largest refinery in the U.S. and one of the largest in the world.