BP starts work on Indiana refinery’s largest crude unit − sources

05 November 2012 23:06  [Source: ICIS news]

HOUSTON (ICIS)--BP has begun an overhaul of the largest crude distillation unit (CDU) at its Whiting refinery in Indiana, sources said on Monday.

Initially, the work was said to involve the smallest of the 337,000 bbl/day refinery’s crude units, but according to a midwest trader, it is now involving the largest.

The intent of this work is to improve the capacity to intake cheaper, heavier crude oil at the refinery.

“Currently they can run this as 20% of their slate and these improvements will enable them to increase this to 85%,” the trader said. “They’ve spent a lot of money to improve that plant and it hasn’t run right since.”

The maintenance work is expected to last until mid-2013.

The midwest trader said it should support Chicago gasoline in Illinois since the refinery will be operating at 50% capacity until then. 

On Monday, Chicago conventional blendstock for oxygen blending (CBOB) traded at a discount of 1.50 cents/gal under gasoline futures.

A BP spokesperson was not immediately available for comment.

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By: Anna Matherne

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