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Released September 21, 2018 | SUGAR LAND
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Researched by Industrial Info Resources (Sugar Land, Texas)--U.S. refiners have processed a record volume of crude in the last three months, according to the U.S. Energy Information Administration, and refineries across the country are expanding capacities and upgrading equipment to accommodate new products and growing demand. Industrial Info is tracking about $1.38 billion in active capital projects in the U.S. Petroleum Refining Industry that are scheduled to begin or finish construction in the fourth quarter.
Click on the image at right for a graph that details the top 10 U.S. states for capital refining projects.
Exxon Mobil Corporation's (NYSE:XOM) (Irving, Texas) nearly $500 million gasoline hydrotreater addition at its refinery in Beaumont, Texas, began in the second half of 2016 and is set to wrap up in the coming months. The 40,000-barrel-per-day (BBL/d) unit, for which Bechtel Group (San Francisco, California) is providing engineering and construction services, is intended to comply with the U.S. government's Tier 3 gasoline requirements, which mandate the sulfur content of gasoline to be reduced from 30 parts per million (ppm) to 10 ppm. For more information, see Industrial Info's project report.
In West Texas, MMEX Resources Corporation (Fort Stockton, Texas) expects to finish construction on a $50 million crude oil refinery in Fort Stockton before the end of the year. The project, which is the first phase of a planned, $1 billion refinery complex, features a 10,000-BBL/d crude distillation unit. Jack Hanks, the chief executive officer of MMEX, told The Fort Stockton Pioneer that the facility will produce non-transportation fuels like off-road diesel, naphtha and residual fuel oil in the first phase, and thereafter would make transportation fuels like gasoline and jet fuel. For more information, see Industrial Info's project report.
Flint Hills Resources Limited Partnership, a subsidiary of Koch Industries Incorporated (Wichita, Kansas), is at work on a pair of upgrades at its Pine Bend Refinery in Rosemount, Minnesota, both of which are expected to wrap up toward the end of the year: a $50 million upgrade to Hydrogen Unit 4, which will reduce emissions and increase hydrogen production, and a multi-million-dollar upgrade to Distillate Hydrocracker Unit 29, so it can accept a gas-oil feed from a heavy gas-oil fractionation column, also under construction. For more information, see Industrial Info's project reports on Hydrogen Unit 4 and Hydrocracker Unit 29.
Husky Energy Incorporated's (TSX:HSE) (Calgary, Alberta) Lima Refinery in Lima, Ohio, has two projects that are set to wrap up next month: the $100 million addition of a sulfur recovery unit, with a capacity of 195 tons per day, and the $25 million upgrade of a delayed coker unit, which will modify its main fractionation column and replace a pair of coke drums. For more information, see Industrial Info's project reports on the sulfur recovery and delayed coker units.
Flint Hills and Husky also have several projects set to begin construction at major refineries. At its refinery's East site in Corpus Christi, Texas, Flint Hills is preparing for a pair of projects that are set to begin and end in the fourth quarter for a total spend of $25 million, which includes an upgrade of its FCCU 2 Unit, which processes 45,000 BBL/d, and upgrade of its crude and vacuum units, which process 60,000 BBL/d and 36,000 BBL/d, respectively. For more information, see Industrial Info's project reports on the FCCU 2 and crude and vacuum units.
Husky is preparing for a $27 million upgrade to its refinery in Superior, Wisconsin, in which it will rebuild the 38,000-BBL/d crude and vacuum unit and 11,000-BBL/d fluid catalytic cracking unit (FCCU). The same refinery was damaged by a tank explosion earlier this year that injured 11, after Husky purchased it last year for $435 million. For more information, see Industrial Info's project report and April 27, 2018, article - Explosion Rocks Husky Energy Refinery in Wisconsin.
Flint Hills and Husky are among the refiners with more than $170 million in maintenance projects that are planned for the fourth quarter, including several at Flint Hills' East site in Corpus Christi and Husky's Lima Refinery. For more information, see September 19, 2018, article - Chevron, Flint Hills, Others Plan Maintenance at Major U.S. Refineries in Fourth Quarter.
The record production from refineries resulted in record gasoline stocks at the end of the summer driving season. But John Kemp of Reuters says this likely means less production in the near future: "The now-plentiful supply of gasoline and, to a lesser extent, distillate implies refiners will have to cut processing more sharply than usual over the next couple of months to avoid creating a glut of refined products."
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 that details the top 10 U.S. states for capital refining projects.Exxon Mobil Corporation's (NYSE:XOM) (Irving, Texas) nearly $500 million gasoline hydrotreater addition at its refinery in Beaumont, Texas, began in the second half of 2016 and is set to wrap up in the coming months. The 40,000-barrel-per-day (BBL/d) unit, for which Bechtel Group (San Francisco, California) is providing engineering and construction services, is intended to comply with the U.S. government's Tier 3 gasoline requirements, which mandate the sulfur content of gasoline to be reduced from 30 parts per million (ppm) to 10 ppm. For more information, see Industrial Info's project report.
In West Texas, MMEX Resources Corporation (Fort Stockton, Texas) expects to finish construction on a $50 million crude oil refinery in Fort Stockton before the end of the year. The project, which is the first phase of a planned, $1 billion refinery complex, features a 10,000-BBL/d crude distillation unit. Jack Hanks, the chief executive officer of MMEX, told The Fort Stockton Pioneer that the facility will produce non-transportation fuels like off-road diesel, naphtha and residual fuel oil in the first phase, and thereafter would make transportation fuels like gasoline and jet fuel. For more information, see Industrial Info's project report.
Flint Hills Resources Limited Partnership, a subsidiary of Koch Industries Incorporated (Wichita, Kansas), is at work on a pair of upgrades at its Pine Bend Refinery in Rosemount, Minnesota, both of which are expected to wrap up toward the end of the year: a $50 million upgrade to Hydrogen Unit 4, which will reduce emissions and increase hydrogen production, and a multi-million-dollar upgrade to Distillate Hydrocracker Unit 29, so it can accept a gas-oil feed from a heavy gas-oil fractionation column, also under construction. For more information, see Industrial Info's project reports on Hydrogen Unit 4 and Hydrocracker Unit 29.
Husky Energy Incorporated's (TSX:HSE) (Calgary, Alberta) Lima Refinery in Lima, Ohio, has two projects that are set to wrap up next month: the $100 million addition of a sulfur recovery unit, with a capacity of 195 tons per day, and the $25 million upgrade of a delayed coker unit, which will modify its main fractionation column and replace a pair of coke drums. For more information, see Industrial Info's project reports on the sulfur recovery and delayed coker units.
Flint Hills and Husky also have several projects set to begin construction at major refineries. At its refinery's East site in Corpus Christi, Texas, Flint Hills is preparing for a pair of projects that are set to begin and end in the fourth quarter for a total spend of $25 million, which includes an upgrade of its FCCU 2 Unit, which processes 45,000 BBL/d, and upgrade of its crude and vacuum units, which process 60,000 BBL/d and 36,000 BBL/d, respectively. For more information, see Industrial Info's project reports on the FCCU 2 and crude and vacuum units.
Husky is preparing for a $27 million upgrade to its refinery in Superior, Wisconsin, in which it will rebuild the 38,000-BBL/d crude and vacuum unit and 11,000-BBL/d fluid catalytic cracking unit (FCCU). The same refinery was damaged by a tank explosion earlier this year that injured 11, after Husky purchased it last year for $435 million. For more information, see Industrial Info's project report and April 27, 2018, article - Explosion Rocks Husky Energy Refinery in Wisconsin.
Flint Hills and Husky are among the refiners with more than $170 million in maintenance projects that are planned for the fourth quarter, including several at Flint Hills' East site in Corpus Christi and Husky's Lima Refinery. For more information, see September 19, 2018, article - Chevron, Flint Hills, Others Plan Maintenance at Major U.S. Refineries in Fourth Quarter.
The record production from refineries resulted in record gasoline stocks at the end of the summer driving season. But John Kemp of Reuters says this likely means less production in the near future: "The now-plentiful supply of gasoline and, to a lesser extent, distillate implies refiners will have to cut processing more sharply than usual over the next couple of months to avoid creating a glut of refined products."
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/.
