Holly Corporation Expands Rocky Mountain Refineries

---

Researched by Industrial Info Resources (Sugar Land, Texas)--Holly Corporation (NYSE:HOC) (Dallas, Texas) has invested more than $100 million expanding its subsidiary Holly Refining & Marketing Company LLC's (HRMM) (Woods Cross, Utah) refinery and roughly $200 million at subsidiary Navajo Refining Company's refinery in Artesia, New Mexico. The bulk of the investment was spent on construction of two 15,000-barrel-per-day (BBL/d) gas oil mild hydrocrackers at both locations, which also include hydrotreating capabilities. Each unit cost $100 million to construct and utilizes Process Dynamics' IsoTherming Hydrocracking Technology.

The mild hydrocracker at Woods Cross refinery came online the end of 2008. The Benham Companies LLC (Oklahoma City, Oklahoma) performed engineering and construction for the new unit, which has three reactors. The Artesia refinery's mild hydrocracker unit has five reactors and was engineered by KP Engineering LP (Tyler, Texas) and constructed by Ref-Chem (Odessa, Texas). Construction of this unit was completed in April of this year. These new additions will enable the refineries to process black wax and heavy Canadian crude plus increase distillate yields and meet low-sulfur gasoline specifications.

The Woods Cross refinery also considered constructing a 9,000-BBL/d APC UOP technology gas oil hydrotreater instead of the recently constructed mild hydrocracker. Although the cost for the hydrocracker was estimated to cost more than six times the amount of the gas oil hydrotreater, looking at long term return of investment, the option chosen will eventually be more profitable for the refinery.

The sulfur content is much higher and more impurities need to be removed from Canadian crude than the sweet crude normally bought by refiners, but the Canadian crude is increasing in popularity among refineries, because it is offered at a much cheaper price.

Benham Constructors also engineered and constructed a 10,000-BBL/d Diesel Hydrotreater addition for HRMM's Woods Cross refinery, which was completed in 2006. The mild hydrocracker completed last year will be Benham's second major engineering and construction contract they've been awarded at this refinery since 2004, when engineering begun for the Diesel Unit.

Navajo's Artesia refinery has just completed a 100-ton-per-day sulfur recovery unit and a 28 million-standard-cubic-feet-per-day hydrogen unit in the middle of April, with a third 20,000-BBL/d residuum oil supercritical extraction (ROSE) unit scheduled to be complete in fall 2009. The Hydrogen Unit was engineered by CB&I Howe-Baker International LLC (Tyler). Gulf States Incorporated (Freeport, Texas) a subsidiary of The Industrial Company (Steamboat Springs, Colorado) was the general contractor for both units. Mustang Engineering (Houston, Texas) provided studies and preliminary engineering services for the ROSE unit and Lauren Engineers and Constructors Incorporated are in the final phases of construction for the new unit.

Despite today's recession and so many refineries being affected by the market slowdown, Holly Corporation appears to be looking ahead to a bright economic future. Strategically planning ways for continued company growth and making sure they stay on top of the competition, Holly recently announced that HRMM will be expanding their operations in the coming months. HRMM will acquire Sunoco Incorporated's (NYSE:SUN) (Philadelphia, Pennsylvania) 85,000-BBL/d refinery in June 2009, agreeing to pay Sunoco $65 million for the refinery.

View Plant Profile - 1015323 1015303 1013299
View Project Report - 44000579 44000137 44000433 42000461 42000509 42000462 420004507

Industrial Info Resources (IIR) is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy related markets. For more than 26 years, Industrial Info has provided plant and project opportunity databases, market forecasts, high resolution maps, and daily industry news.