Delek Plots Additions, Upgrades Across its U.S. Refining System, Led by Big Spring, Texas

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Researched by Industrial Info Resources (Sugar Land, Texas)--Delek US Holdings Incorporated, a subsidiary of Delek Group (Netanya, Israel), is planning a series of projects at all four of its U.S. refineries, which have a combined crude-throughput capacity of 302,000 barrels per day (BBL/d). Industrial Info is tracking nearly $1.9 billion in active Delek projects worldwide, including about 30 projects at the four facilities in Texas, Louisiana and Arkansas.

Click on the image at right for a graph detailing project activity at each of the four Delek US facilities, by investment value.

Delek's refinery in Big Spring, Texas, which is in the heart of the Permian Basin, is looking at the most investment of the four plants. The company is planning to begin the addition of a nitrous oxide (NOX) and sulfur dioxide (SO2) emission-reduction system early next year, which will include the installation of a wet-gas scrubber to reduce SO2 emissions from a 25,000-BBL/d fluid catalytic cracker unit (FCCU).

Later this year, the Big Spring Refinery will begin an upgrade of its gasoline hydrotreater unit, in order to reduce sulfur content in gasoline produced at the 12,000-BBL/d unit from 30 to 10 parts per million (ppm) to meet Tier 3 regulations. For more information, see Industrial Info's reports on the NOX/SO2 and gasoline hydrotreater projects.

The Big Spring Refinery is in its early preparatory stages for a multi-phase expansion set to kick off in early 2021. Plenty of factors could delay, alter or eliminate the project investment, but with demand for Permian product only accelerating, Delek will need to accommodate more capacity ASAP. The expansion includes:

• increasing the capacity of the 73,000 BBL/d crude unit to 100,000 BBL/d; see project report
• upgrading the 25,000-BBL/d FCCU; see project report
• increasing the capacity of the 22,750-BBL/d diesel hydrotreater to 27,300 BBL/d; see project report
• increasing the capacity of the 6,000-BBL gas oil hydrotreater to 7,200 BBL/d; see project report
• increasing the capacity of the 21,000-BBL/d reformer to 25,200 BBL/d; see project report

A more limited number of projects are planned for Delek's refinery in Tyler, Texas, one of which already is under construction: a wastewater treatment system upgrade for the 60,000-BBL/d facility. Delek also is planning an upgrade to the delayed coker unit, which currently processes 10,000 BBL/d, and an upgrade to the FCCU, which currently processes 20,000 BBL/d. For more information, see Industrial Info's reports on the wastewater treatment, delayed coker and FCCU projects.

Delek's also is preparing for an FCCU upgrade at its refinery in Krotz Springs, Louisiana, which has a capacity for 32,500 BBL/d. In May, Delek announced it would invest $150 million in Krotz Springs over the next five years. For more information, see Industrial Info's project report.

In addition to Delek's capital projects, Industrial Info is tracking maintenance work at all four facilities, including the ongoing 2019 and planned 2020 maintenance programs at the refinery in El Dorado, Arkansas. Delek is planning routine maintenance and inspections on 10 to 20 crude-oil and finished-product tanks at the facility, ranging from 5,000 to 100,000 barrels in capacity, each year. For more information, see Industrial Info's project reports on the 2019 and 2020 programs.

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