Capital Project Decision Makers at Gulf Coast Refineries
Last reviewed May 1, 2026
Capital project decisions at Gulf Coast refineries involve a cross functional team led by the Project Director or Capital Projects Manager. Engineering Managers define technical specifications, while the VP of Operations or Site Director approves the business case. During Front End Engineering Design, the owner engineering team controls scope and vendor selection. Once the project moves to EPC execution, the engineering contractor manages procurement within the owner approved vendor framework. Projects over $50 million typically require corporate board approval.
Key Facts
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Project Director Role
The Project Director is the Senior Role responsible for delivering the capital project on scope, schedule, and budget. This person reports to the VP of Operations or VP of Capital Projects and manages internal project teams as well as external engineering contractors. Project Directors hold significant influence over contractor selection, equipment specification, and project execution strategy.
Engineering Manager Influence
The site Engineering Manager or Chief Engineer controls technical specifications and equipment selection. During FEED, the engineering team evaluates vendor proposals, conducts technical bid evaluations, and makes equipment selection recommendations. Their technical approval is required before procurement can issue a purchase order for any engineered item.
FEED vs EPC Phase Decisions
During Front End Engineering Design, the owner team retains direct control over design decisions, vendor selection, and scope definition. Once the project transitions to EPC execution, procurement authority shifts partially to the engineering contractor, but within the owner approved vendor framework. Critical equipment selection and major subcontract awards still require owner approval.
Approval Gates and Governance
Most operators use a stage gate process for capital projects. Gate 1 covers conceptual design and business case. Gate 2 approves FEED funding. Gate 3 authorizes full project execution. Each gate requires sign off from increasingly senior leadership, with projects over $50 million typically going to the corporate executive committee or board.
Frequently Asked Questions
When should vendors engage on a capital project?
The best time to engage is during the FEED phase when specifications are being written. Once the project moves to EPC and bid packages are issued, the scope is largely locked and vendor options narrow significantly.
Do EPC contractors choose the equipment vendors?
EPC contractors procure equipment but are typically limited to the owner approved vendor list. For critical items, the owner engineering team participates directly in vendor evaluation and retains final selection authority.
How are capital project budgets determined?
Budgets are developed during the FEED phase using Class 3 or Class 2 cost estimates. The estimate accuracy improves through each stage gate, from Class 5 at concept to Class 1 at detailed design. Most operators require a Class 3 estimate before authorizing full project funding.
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