Chevron expects to break ground in early 2008 and complete the project by mid-2010, the company said. The project will create 700 construction jobs.

Within three years, the unit will increase gasoline production by about 10 percent, or 600,000 gallons a day, Chevron said.

"This project further demonstrates our commitment to investing in the flexibility and reliability of our global refining network and expanding production of clean-burning transportation fuels increasingly in demand by our customers," Chevron Global Refining President Jeet Bindra said.