HollyFrontier revises refinery project, will now use US crude

05 January 2012 21:59  [Source: ICIS news]

HOUSTON (ICIS)--HollyFrontier revised its refinery expansion project in Utah so it will now rely on crude oil produced in the US instead of Canada, a company spokesman said on Thursday.

The Woods Cross expansion will increase the refinery’s capacity to 45,000 bbl/day from 31,000 bbl/day, with yields from the expansion around 60% gasoline and 40% diesel.

The expansion is expected to be completed in late 2014.

HollyFrontier changed its expansion project because market conditions changed, the spokesman said.

With the delay of the Keystone Pipeline, there is less certainty of strong Canadian crude supplies to the US.

The refinery will increase capacity for production of yellow and black wax crude from the nearby Uinta Basin to 24,000 bbl/day from current capabilities of 10,000 bbl/day.

HollyFrontier signed a 10-year agreement with Newfield Exploration for the crude supply, which will be transported by truck.

The wax crude is a paraffinic crude with low sulphur levels. The crude is similar to gas oil, and accordingly, small amounts can be fed directly into the catalytic cracker, foregoing the crude unit.

The company has already installed increased emission controls at the refinery from when the company was progressing on its expansion for Canadian crude oil production.

The expansion is in response to the local and near local market demand, the company spokesman said. The Woods Cross refinery is one of five in the Salt Lake City region of Utah.

The refinery’s products supply markets as far south as Las Vegas, Nevada, and as far north as Idaho and southwest Wyoming.

By: Sheena Martin
+1 713 525 2653

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