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RE: Husky to Buy Valero's Lima Refinery for $1.9 Billion

Home Forums Refining Community Refinery News Husky to Buy Valero's Lima Refinery for $1.9 Billion RE: Husky to Buy Valero's Lima Refinery for $1.9 Billion

#7414

Charles Randall
Participant

Looks like the Valero Lima Coker Expansion (and potential supply for a petcoke IGCC) may move ahead – but it will be as Husky Lima expansion.
 
Husky outbid nine other companies (but at low cost of $11.5k/MBD capacity cost vs. Lyondell’s $20k/MBD) in its successful purchase of the120 year old Lima Refining facility, from the U.S.’s biggest refiner, Valero. Valero plans to use proceeds from the refinery sale to buy back shares of its stock.
 
Husky, meanwhile, needed additional refining capacity, like many Canadian oil sands producers, as it taps into Western Canada’s largely untouched oil sands reserves. Husky has bitumen crude coming from its 2006 Tucker (~30MBD) and 2010 Sunrise (~200 MBD) production to place into US refining to maintain growth. Husky also has plans to expand its 77 MBD Lloydminster upgrader & coker to take in some of the Sunrise production.
 
Husky plans to put another $2 billion of improvements into the plant – especially the coking facility which has mainly processed sweet crude resid until now.
 

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