Reports related to this article:
Project(s): View 9 related projects in PECWeb
Plant(s): View 3 related plants in PECWeb
Released February 28, 2024 | SUGAR LAND
en
Researched by Industrial Info Resources (Sugar Land, Texas)--Delek US (Brentwood, Tennessee), a subsidiary of Delek Group (Netanya, Israel), is reducing its capital-expenditure program for 2024 from that of last year, when the company's refining business took a hit from lower crack spreads. Delek will focus its U.S. efforts on improving capacity and efficiencies at its major refineries, with further overhauls and upgrades planned for the coming years. Industrial Info is tracking more than $2 billion worth of active and planned projects from Delek worldwide, including more than $675 million worth in the U.S.
Click on the image at right for a graph detailing Delek's active and planned projects across the U.S., by state.
"During the fourth quarter, we operated well, achieving record total throughput in refining," said Avigal Soreq, the chief executive officer of Delek US, in a quarterly earnings-related press release. "The market environment was less than favorable, but we remained focused on what we could control."
Delek executives estimate the company's 2024 capital expenditures will total about $330 million, including $220 million for its refining business and $70 million for logistics. The company's 2023 capital expenditures totaled $389 million.
One of the Delek's largest undertakings in the U.S. is a lengthy series of improvements at its refining complex in Big Spring, Texas, where it plans to begin work on the $31.2 million addition of a benzene stripper, to better comply with the U.S. Environmental Protection Agency's limitations on benzene emissions. Subscribers to Industrial Info's Global Market Intelligence (GMI) Petroleum Refining Project and Plant databases can learn more in a detailed project report and plant profile.
The Big Spring complex also is slated to see a series of capacity additions kick off early next year, including expansions to the crude unit, from 73,000 to 100,000 barrels per day (BBL/d); the hydrotreater unit, from 22,750 to 27,300 BBL/d; and the reformer unit, from 21,000 to 25,200 BBL/d. Delek also is planning an upgrade to the sulfur recovery unit to improve antiquated technology. Each project is planned to wrap up by the end of first-quarter 2025, although many factors could push back the estimated completion. Subscribers can read detailed reports on the crude, hydrotreater, reformer and sulfur recovery projects.
Delek expects the improvement to the Big Spring complex will improve its throughput utilization by 5 million BBL/d and increase the complex's capture rate to about 70%. Earlier this month, the U.S. Department of Energy's (DOE) Office of Clean Energy Demonstrations announced it would negotiate a cost-sharing agreement with Delek to support a carbon-capture pilot project for the Big Spring refinery. The DOE's Carbon-Capture Large-Scale Pilot Project program provides 70% cost-share for up to $95 million of federal funding to support project development, according to Delek.
On the U.S. Gulf Coast, Delek is preparing for a $50 million fluid catalytic-cracking unit (FCCU) upgrade at its refinery in Krotz Springs, Louisiana. The company plans to improve operations at the 32,500-BBL/d FCCU by replacing older cyclones that use Honeywell International's (NASDAQ:HON) (Charlotte, North Carolina) UOP Technology with KBR Incorporated's (NYSE:KBR) (Houston, Texas) newer Proprietary Cyclone model. Subscribers can learn more from Industrial Info's project report and plant profile.
Delek also is looking into a series of proposed improvements at its 83,000-BBL/d refinery in El Dorado, Arkansas, including an upgrade to its crude and vacuum unit to improve flexibility; an upgrade to its FCCU to improve its gasoline yield; and an upgrade to its hydrotreater. Subscribers can learn more from detailed reports on the crude and vacuum, FCCU and hydrotreater projects, and a detailed plant profile.
During 2023, Delek incurred $6.7 million in net losses from a fire that broke out at the El Dorado refinery in May, after lightning struck a slurry tank. The fire was quickly extinguished, with no injuries reported. Expenses aside, Delek's operations were not affected significantly.
In addition to the above-mentioned capital-spending projects, Industrial Info is tracking more than $315 million worth of active and planned maintenance-related projects at U.S.-based Delek facilities. Subscribers can click here for a full list of detailed project reports for these turnarounds.
Subscribers to Industrial Info's GMI Project and Plant databases can click here for a full list of detailed reports for projects mentioned in this article, and click here for a full list of related plant profiles.
Subscribers can click here for a full list of reports for active and planned projects worldwide from Delek.
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) platform helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking more than 200,000 current and future projects worth $17.8 trillion (USD).
Click on the image at right for a graph detailing Delek's active and planned projects across the U.S., by state."During the fourth quarter, we operated well, achieving record total throughput in refining," said Avigal Soreq, the chief executive officer of Delek US, in a quarterly earnings-related press release. "The market environment was less than favorable, but we remained focused on what we could control."
Delek executives estimate the company's 2024 capital expenditures will total about $330 million, including $220 million for its refining business and $70 million for logistics. The company's 2023 capital expenditures totaled $389 million.
One of the Delek's largest undertakings in the U.S. is a lengthy series of improvements at its refining complex in Big Spring, Texas, where it plans to begin work on the $31.2 million addition of a benzene stripper, to better comply with the U.S. Environmental Protection Agency's limitations on benzene emissions. Subscribers to Industrial Info's Global Market Intelligence (GMI) Petroleum Refining Project and Plant databases can learn more in a detailed project report and plant profile.
The Big Spring complex also is slated to see a series of capacity additions kick off early next year, including expansions to the crude unit, from 73,000 to 100,000 barrels per day (BBL/d); the hydrotreater unit, from 22,750 to 27,300 BBL/d; and the reformer unit, from 21,000 to 25,200 BBL/d. Delek also is planning an upgrade to the sulfur recovery unit to improve antiquated technology. Each project is planned to wrap up by the end of first-quarter 2025, although many factors could push back the estimated completion. Subscribers can read detailed reports on the crude, hydrotreater, reformer and sulfur recovery projects.
Delek expects the improvement to the Big Spring complex will improve its throughput utilization by 5 million BBL/d and increase the complex's capture rate to about 70%. Earlier this month, the U.S. Department of Energy's (DOE) Office of Clean Energy Demonstrations announced it would negotiate a cost-sharing agreement with Delek to support a carbon-capture pilot project for the Big Spring refinery. The DOE's Carbon-Capture Large-Scale Pilot Project program provides 70% cost-share for up to $95 million of federal funding to support project development, according to Delek.
On the U.S. Gulf Coast, Delek is preparing for a $50 million fluid catalytic-cracking unit (FCCU) upgrade at its refinery in Krotz Springs, Louisiana. The company plans to improve operations at the 32,500-BBL/d FCCU by replacing older cyclones that use Honeywell International's (NASDAQ:HON) (Charlotte, North Carolina) UOP Technology with KBR Incorporated's (NYSE:KBR) (Houston, Texas) newer Proprietary Cyclone model. Subscribers can learn more from Industrial Info's project report and plant profile.
Delek also is looking into a series of proposed improvements at its 83,000-BBL/d refinery in El Dorado, Arkansas, including an upgrade to its crude and vacuum unit to improve flexibility; an upgrade to its FCCU to improve its gasoline yield; and an upgrade to its hydrotreater. Subscribers can learn more from detailed reports on the crude and vacuum, FCCU and hydrotreater projects, and a detailed plant profile.
During 2023, Delek incurred $6.7 million in net losses from a fire that broke out at the El Dorado refinery in May, after lightning struck a slurry tank. The fire was quickly extinguished, with no injuries reported. Expenses aside, Delek's operations were not affected significantly.
In addition to the above-mentioned capital-spending projects, Industrial Info is tracking more than $315 million worth of active and planned maintenance-related projects at U.S.-based Delek facilities. Subscribers can click here for a full list of detailed project reports for these turnarounds.
Subscribers to Industrial Info's GMI Project and Plant databases can click here for a full list of detailed reports for projects mentioned in this article, and click here for a full list of related plant profiles.
Subscribers can click here for a full list of reports for active and planned projects worldwide from Delek.
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) platform helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking more than 200,000 current and future projects worth $17.8 trillion (USD).
