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Released June 07, 2018 | SUGAR LAND
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Researched by Industrial Info Resources (Sugar Land, Texas)--The U.S. Southwest region, particularly the Gulf Coast, may account for the bulk of Petroleum Refining Industry kickoffs for 2018, but the Midwest and Rocky Mountain regions are looking at a fairly strong investment value for their own refining projects. Industrial Info is tracking $1.14 billion in refining-related projects that are set to begin construction in the two regions before the end of the year, almost 75% of which is attributed to projects in North Dakota and Utah.
Click on the image at right for a graph detailing Petroleum Refining Industry kickoffs in the U.S. Midwest and Rocky Mountain regions in the second half of 2018, by state.
Not surprisingly, the largest project is proposed for North Dakota's Bakken Shale. Meridian Energy Group Incorporated (Belfield, North Dakota) is preparing to begin construction on the $600 million Davis Refinery near Belfield, North Dakota, which is designed to process 27,500 barrels per day (BBL/d) into gasoline, diesel and naphtha. Zia Engineering & Environmental Consultants (Las Cruces, New Mexico) is slated to perform the front-end engineering and design (FEED) study, while Vepica USA is serving as engineer. Meridian currently expects to be completed before the end of 2019.
North Dakota's Division of Air Quality is expected to decide on the Davis Refinery's air quality permit sometime this month. Meridian announced earlier this week that it is working with Target Lodging (The Woodlands, Texas) to provide the workforce housing for the Davis Refinery. Although the company says the refinery will generate about 200 full-time jobs, some residents, including members of the Dakota Resource Council, have expressed concerns that air pollution from the refinery could damage the nearby Theodore Roosevelt National Park. For more information, see Industrial Info's project report.
Utah is home to several upgrade-related projects that are set to kick off before the end of 2018. Chevron Corporation (NYSE:CVX) (San Ramon, California) plans to begin a $67 million revamp of its refinery in North Salt Lake soon. The company plans to replace a hydrofluoric acid catalyst system with a modularized liquid-ionic salts catalyst system in the 4,500-BBL/d hydrofluoric alkylation unit, to increase feed flexibility, improve safety, and decrease consumption. For more information, see Industrial Info's project report.
Two other Utah upgrades are intended to comply with the U.S. government's Tier 3 gasoline requirements, which require the sulfur content of gasoline to be reduced from 30 parts per million (ppm) to 10 ppm: Andeavor Corporation's (NYSE:ANDV) (San Antonio, Texas) $100 million revamp of a gasoline hydrotreater at its refinery in Salt Lake City, which has an 8,000-BBL/d capacity, and Chevron's $20 million upgrade of a vacuum gasoil hydrotreater at its refinery in North Salt Lake, which has a 20,000-BBL/d capacity. For more information, see Industrial Info's reports on the Andeavor and Chevron projects.
New Mexico and Wyoming also are expected to see several Tier 3 upgrades. Andeavor is planning a $25 million upgrade to the Gallup Refinery in Jamestown, New Mexico, which will reduce sulfur content in its 7,000-BBL/d naphtha hydrotreater, while Sinclair Oil Corporation (Salt Lake City, Utah) is planning a $25 million fluid catalytic cracker unit (FCCU) upgrade and a $10 million naphtha hydrotreater unit upgrade at its refinery in Casper, Wyoming. Sinclair will use technology from Exxon Mobil Corporation (NYSE:XOM) (Irving, Texas) to improve its 13,000-BBL/d and 5,000-BBL/d units, respectively. For more information, see Industrial Info's reports on the Gallup, Casper FCCU and Casper hydrotreater projects.
Other upgrades in the Midwest and Rocky Mountain regions are intended to increase production. Cenex Harvest States Incorporated (Laurel, Montana) is preparing to kick off a $25 million revamp at its refinery in Laurel, Montana, which will overhaul the hydrocracker unit to increase crude slate flexibility and diesel production at the 55,000-BBL/d facility, while HollyFrontier Corporation (NYSE:HFC) (Dallas, Texas) is performing preliminary engineering for a $25 million upgrade to its refinery in El Dorado, Kansas, which will improve the 22,000-BBL/d Reformer CRU 2 to increase production by roughly 10% to 15%. For more information, see Industrial Info's reports on the Laurel and El Dorado projects.
Industrial Info also is tracking $196 million in maintenance-related projects set to kick off in the Midwest and Rocky Mountain regions before the end of the year.
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, six offices in North America and 12 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities. Follow IIR on: Facebook - Twitter - LinkedIn. For more information on our coverage, send inquiries to info@industrialinfo.com or visit us online at http://www.industrialinfo.com/.
Click on the image at right for a graph detailing Petroleum Refining Industry kickoffs in the U.S. Midwest and Rocky Mountain regions in the second half of 2018, by state.Not surprisingly, the largest project is proposed for North Dakota's Bakken Shale. Meridian Energy Group Incorporated (Belfield, North Dakota) is preparing to begin construction on the $600 million Davis Refinery near Belfield, North Dakota, which is designed to process 27,500 barrels per day (BBL/d) into gasoline, diesel and naphtha. Zia Engineering & Environmental Consultants (Las Cruces, New Mexico) is slated to perform the front-end engineering and design (FEED) study, while Vepica USA is serving as engineer. Meridian currently expects to be completed before the end of 2019.
North Dakota's Division of Air Quality is expected to decide on the Davis Refinery's air quality permit sometime this month. Meridian announced earlier this week that it is working with Target Lodging (The Woodlands, Texas) to provide the workforce housing for the Davis Refinery. Although the company says the refinery will generate about 200 full-time jobs, some residents, including members of the Dakota Resource Council, have expressed concerns that air pollution from the refinery could damage the nearby Theodore Roosevelt National Park. For more information, see Industrial Info's project report.
Utah is home to several upgrade-related projects that are set to kick off before the end of 2018. Chevron Corporation (NYSE:CVX) (San Ramon, California) plans to begin a $67 million revamp of its refinery in North Salt Lake soon. The company plans to replace a hydrofluoric acid catalyst system with a modularized liquid-ionic salts catalyst system in the 4,500-BBL/d hydrofluoric alkylation unit, to increase feed flexibility, improve safety, and decrease consumption. For more information, see Industrial Info's project report.
Two other Utah upgrades are intended to comply with the U.S. government's Tier 3 gasoline requirements, which require the sulfur content of gasoline to be reduced from 30 parts per million (ppm) to 10 ppm: Andeavor Corporation's (NYSE:ANDV) (San Antonio, Texas) $100 million revamp of a gasoline hydrotreater at its refinery in Salt Lake City, which has an 8,000-BBL/d capacity, and Chevron's $20 million upgrade of a vacuum gasoil hydrotreater at its refinery in North Salt Lake, which has a 20,000-BBL/d capacity. For more information, see Industrial Info's reports on the Andeavor and Chevron projects.
New Mexico and Wyoming also are expected to see several Tier 3 upgrades. Andeavor is planning a $25 million upgrade to the Gallup Refinery in Jamestown, New Mexico, which will reduce sulfur content in its 7,000-BBL/d naphtha hydrotreater, while Sinclair Oil Corporation (Salt Lake City, Utah) is planning a $25 million fluid catalytic cracker unit (FCCU) upgrade and a $10 million naphtha hydrotreater unit upgrade at its refinery in Casper, Wyoming. Sinclair will use technology from Exxon Mobil Corporation (NYSE:XOM) (Irving, Texas) to improve its 13,000-BBL/d and 5,000-BBL/d units, respectively. For more information, see Industrial Info's reports on the Gallup, Casper FCCU and Casper hydrotreater projects.
Other upgrades in the Midwest and Rocky Mountain regions are intended to increase production. Cenex Harvest States Incorporated (Laurel, Montana) is preparing to kick off a $25 million revamp at its refinery in Laurel, Montana, which will overhaul the hydrocracker unit to increase crude slate flexibility and diesel production at the 55,000-BBL/d facility, while HollyFrontier Corporation (NYSE:HFC) (Dallas, Texas) is performing preliminary engineering for a $25 million upgrade to its refinery in El Dorado, Kansas, which will improve the 22,000-BBL/d Reformer CRU 2 to increase production by roughly 10% to 15%. For more information, see Industrial Info's reports on the Laurel and El Dorado projects.
Industrial Info also is tracking $196 million in maintenance-related projects set to kick off in the Midwest and Rocky Mountain regions before the end of the year.
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, six offices in North America and 12 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities. Follow IIR on: Facebook - Twitter - LinkedIn. For more information on our coverage, send inquiries to info@industrialinfo.com or visit us online at http://www.industrialinfo.com/.
