US Delek Holdings to add alkylation unit at Louisiana refinery

HOUSTON (ICIS)–US refiner Delek US Holdings will install a 6,000 bbl/day alkylation unit at its Krotz Springs, Louisiana, refinery, according to information made available on Tuesday.

In a filing with the US Securities and Exchange Commission (SEC), the Brentwood, Tennessee-based oil refining and logistics company said it will use isobutane as a feedstock to produce high-octane gasoline components and enhance multiple summer grades of gasoline.

Construction started in September 2017 at the 74,000 bbl/day refinery, and is expected to be completed in first-quarter 2019.

Total cost is estimated at $103m, according to the filing.

The company is also exploring methods to increase the refinery’s access to lower-cost crude oil by adjusting the crude slate between Louisiana Light Sweet (LLS) and Midland crude oil grades, according to the filing.

ICIS data showed Midland crude oil trading at $3.30/bbl under LLS.