Frontier Refining Awards Engineering and Construction Contracts for $224 Million Capital Improvement Projects in Kansas and Wyoming

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Researched by Industrial Info Resources (Sugar Land, Texas). Frontier Refining Company (NYSE:FTO)(Houston, Texas) has awarded engineering and construction contracts for $224 million worth of capital improvement projects in El Dorado, Kansas and Cheyenne, Wyoming.

At Frontier’s 110,000-barrel per day El Dorado refinery in Kansas, the company will invest an estimated $140 million. The projects involve expanding the crude unit capacity from 110,000 to 126,000 barrels per day and construct a new 50,000-barrel per day vacuum tower. The crude unit and vacuum tower expansions in El Dorado will allow for higher crude charge rates, higher gasoline and distillate yields and significantly higher runs of heavy crude oil. The offsite portion of the project involves demolishing a scrap yard maintenance shop and warehouse building, construct an operator shelter building, modify crude flare system, and performing upgrades on supporting utilities.

Frontier awarded CB&I Howe Baker International LLC (Tyler, Texas) a contract to perform engineering, procurement, and construction services for crude and vacuum unit expansions. Frontier will select an engineering firm in the early summer of 2006 for outside battery limits work.

At its 52,000-barrel per day Cheyenne refinery in Wyoming, Frontier is planning to invest an estimated $84 million and has awarded D-Cok LLC, a subsidiary of International Alliance Group (Houston, Texas), to perform engineering, procurement, and construction services for a delayed coker expansion. At the Cheyenne refinery, the coker expansion will decrease the amount of asphalt produced, thereby increasing production of light products. The project involves increasing the coker capacity to 12,000 barrels per day, replacing three coke drums, and installing automatic deheading devices.

Frontier will select an engineering and construction firm in the fall of 2006 for a crude unit expansion project, which will involve modifications to the main distillation column.

Frontier Oil Corporation is headquartered in Houston, Texas and their subsidiary company, Frontier Refining and Marketing, Incorporated, is located in Denver, Colorado. Frontier Oil Corporation has only two refineries, which are located in Wyoming and Kansas. Frontier acquired the 110,000 barrels per day El Dorado refinery from Equilon Enterprises LLC effective November 17, 1999. The company’s primary products of gasoline, diesel and asphalt are marketed in the Rocky Mountain and Plains States.

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