Tesoro Completes Installation of a New Diesel Hydrotreater at Salt Lake City Utah Refinery

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Researched by Industrialinfo.com (Industrial Information Resources, Incorporated; Houston, Texas). Tesoro Corporation (NYSE:TSO) (San Antonio, Texas) completed construction in December 2004 of a new diesel hydrotreater at its Salt Lake City, Utah refinery. CEntry Constructors and Engineers (Salt Lake City, Utah), a wholly-owned subsidiary of The Layton Companies (Sandy, Utah), provided engineering and procurement services for the $20 million project.

The project consisted of relocating an idled 13,000-barrel per day hydrotreater from the closed Cenco refinery in Sante Fe Springs, California, and performing upgrades to bring the daily charge rate up 16,000 barrels per day. Relocation of the unit commenced in August 2003, with erection starting the following spring. With this new addition, the refinery is now capable of producing low-sulfur (500ppm sulfur content) diesel.

A planned $15 million second phase will involve adding a third reactor to the diesel hydrotreater, which will enable the refinery to produce ultra-low sulfur diesel (ULSD). The reactor has been ordered and will be delivered in September 2005. The company is evaluating a Fall 2005 or Spring 2006 shutdown to perform the installation. The ULSD project will further reduce sulfur content to 15ppm.

Tesoro, a Fortune 500 company, is a leading independent refiner serving the western United States. The company's six refineries have a combined rated crude oil capacity of nearly 560,000 barrels per day and produce a range of motor fuels and other petroleum products.

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