Reports related to this article:
Project(s): View 3 related projects in PECWeb
Plant(s): View 3 related plants in PECWeb
Released September 06, 2019 | SUGAR LAND
en
Researched by Industrial Info Resources (Sugar Land, Texas)--Husky Energy Incorporated (TSX:HSE) (Calgary, Alberta) is on track with several refining and production projects, Chief Executive Officer Rob Peabody said this week at the Barclays CEO Energy-Power Conference.
Industrial Info is tracking $15.5 billion worth of project activity by Husky in various stages of development.
Click on the image at right for a graph showing Husky's project activity by industry sector.
The company continues to make progress on its $400 million project to rebuild its 45,000-barrel-per-day (BBL/d) Superior Refinery in Wisconsin and return it to operations, Peabody said. The project comes in the wake of an explosion at the refinery in 2018. Demolition work at the site began earlier this year. Husky bought the refinery from Calumet Specialty Products in late 2017.
"Once final permits are in hand, we plan to begin construction next month and (have) an expected startup date in 2021 of the whole facility," Peabody said. "Superior remains an excellent asset for Husky. It is the first U.S. refinery along the route of the Enbridge Mainline (oil pipeline from Canada). It is ideally positioned to process our crude feedstocks into high-demand products such as gasoline, diesel and asphalt for the US. Midwest market."
The Superior Refinery project includes rebuilding the 38,000-BBL/d crude and vacuum unit by replacing column internals and increasing production capacity to 43,000 BBL/d. The 11,000-BBL/d fluid catalytic cracker unit also is being rebuilt. Jacobs Engineering Group Incorporated (NYSE:JEC) (Dallas, Texas) is the engineering, procurement and construction (EPC) contractor. For more information, see Industrial Info's project report.
At Husky's 165,000-BBL/d Lima refinery in Ohio, Peabody said, a crude oil flexibility project "is in the home stretch, and we expect it to be completed by the end of this year. By increasing the refinery's heavy oil capacity to 40,000 BBL/d, we will improve our ability to capture margin by reducing feedstock costs and improving optionality."
Husky's five-year plan calls for a $1.7 billion reduction in capital expenditures, as the oil producer and refiner strives to increase returns to stockholders. The plan, which runs through 2023, is marked by capital discipline, with "reduced spending as we get some of our longer lead projects up and running," Peabody said. For related information, see May 29, 2019, article - Husky Energy Reduces Planned Capital Spending.
Under the plan, upstream oil equivalent production is expected to grow by 100,000 BBL/d, Peabody said. Husky currently produces 300,000 BBL/d.
"We have a number of organic growth projects coming on in the next few years," Peabody said, including the offshore West White Rose crude oil platform, located offshore Newfoundland and Labrador, and projects in China. The West White Rose is expected to produce 52,500 BBL/d, with a peak of 75,000 BBL/d. Completion and first oil are expected in third-quarter 2022. For more information on the $2.2 billion West White Rose platform, see Industrial Info's project report.
"In addition we are bringing on a number of thermal (oil production) projects," Peabody said. "We are developing three of these 10,000-BBL/d developments every two years. Our latest project at Dee Valley (Saskatchewan) has just come online, (and is) currently up to almost half its nameplate capacity after a month in operation. Once it ramps up over the next couple of months, we will be producing over 90,000 BBL/d from our Saskatchewan thermal projects." For more information, see Industrial Info's project report.
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.
Industrial Info is tracking $15.5 billion worth of project activity by Husky in various stages of development.
The company continues to make progress on its $400 million project to rebuild its 45,000-barrel-per-day (BBL/d) Superior Refinery in Wisconsin and return it to operations, Peabody said. The project comes in the wake of an explosion at the refinery in 2018. Demolition work at the site began earlier this year. Husky bought the refinery from Calumet Specialty Products in late 2017.
"Once final permits are in hand, we plan to begin construction next month and (have) an expected startup date in 2021 of the whole facility," Peabody said. "Superior remains an excellent asset for Husky. It is the first U.S. refinery along the route of the Enbridge Mainline (oil pipeline from Canada). It is ideally positioned to process our crude feedstocks into high-demand products such as gasoline, diesel and asphalt for the US. Midwest market."
The Superior Refinery project includes rebuilding the 38,000-BBL/d crude and vacuum unit by replacing column internals and increasing production capacity to 43,000 BBL/d. The 11,000-BBL/d fluid catalytic cracker unit also is being rebuilt. Jacobs Engineering Group Incorporated (NYSE:JEC) (Dallas, Texas) is the engineering, procurement and construction (EPC) contractor. For more information, see Industrial Info's project report.
At Husky's 165,000-BBL/d Lima refinery in Ohio, Peabody said, a crude oil flexibility project "is in the home stretch, and we expect it to be completed by the end of this year. By increasing the refinery's heavy oil capacity to 40,000 BBL/d, we will improve our ability to capture margin by reducing feedstock costs and improving optionality."
Husky's five-year plan calls for a $1.7 billion reduction in capital expenditures, as the oil producer and refiner strives to increase returns to stockholders. The plan, which runs through 2023, is marked by capital discipline, with "reduced spending as we get some of our longer lead projects up and running," Peabody said. For related information, see May 29, 2019, article - Husky Energy Reduces Planned Capital Spending.
Under the plan, upstream oil equivalent production is expected to grow by 100,000 BBL/d, Peabody said. Husky currently produces 300,000 BBL/d.
"We have a number of organic growth projects coming on in the next few years," Peabody said, including the offshore West White Rose crude oil platform, located offshore Newfoundland and Labrador, and projects in China. The West White Rose is expected to produce 52,500 BBL/d, with a peak of 75,000 BBL/d. Completion and first oil are expected in third-quarter 2022. For more information on the $2.2 billion West White Rose platform, see Industrial Info's project report.
"In addition we are bringing on a number of thermal (oil production) projects," Peabody said. "We are developing three of these 10,000-BBL/d developments every two years. Our latest project at Dee Valley (Saskatchewan) has just come online, (and is) currently up to almost half its nameplate capacity after a month in operation. Once it ramps up over the next couple of months, we will be producing over 90,000 BBL/d from our Saskatchewan thermal projects." For more information, see Industrial Info's project report.
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.
