Ergon Refining Increases Lube Oil Production Capacity in Mississippi

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Researched by Industrial Info Resources (Sugar Land, Texas)--Ergon Refining Incorporated (Jackson, Mississippi) is nearing completion of a second lube oil hydrotreater at its refinery in Vicksburg, Mississippi. Construction on the new addition began in the first quarter 2008 and is 90% finished, with final completion scheduled for June 2009. The new unit will accompany a 12,000-barrel-per-day (BBL/d) lube oil hydrotreater already located at the Vicksburg site. The existing lube oil unit has one reactor and operates as a batch lube oil hydrotreater that also produces ultra-low-sulfur diesel. The new 8,000-BBL/d unit will have one reactor and two heaters and will produce 6,000 BBL/d of transformer lube oils and 2,000 BBl/d of ultra-low-sulfur diesel. This will allow the sister lube oil unit to strictly produce lube oil products.

Wink Incorporated (Baton Rouge, Louisiana) is providing engineering for the new unit addition. BE&K Engineering Group (Birmingham, Alabama), acquired by KBR Incorporated (NYSE:KBR) (Houston, Texas) in May 2008, is handling the construction portion of the project, with Ergon responsible for releasing the final bids for subcontractors.

The estimated $30 million cost to construct the new unit is considered a major investment for the 25,000-BBL/d refinery and is part of a larger effort to expand the refinery. Ergon added a hydrogen unit with a capacity of 7.5 million standard cubic feet per day in Vicksburg that was completed last summer.

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