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RE: Valero, EnCana Decide Against Ohio Refinery Venture

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#7693

Anonymous

This is update on the Valero & EnCana deal to supply heavy crude to Valero’s Lima refinery – it failed because the $2Billion price tag was too high for VLO. 
 
But EnCana still plans to increase its Hvy crude production to 500,000 BPD by 2015. And Valero still plans to spend $400MM to upgrade Lima Refinery to  increase heavy processing from 10% to more than +40% of its crude slate – something its current 22.5 MBD coker cannot do without major expansion. 
 
So only the supplier of crude,  perhaps the percent of heavy bitumen crude (Premcor & EnCana feasibilty study were looking at up to 100% Canadian crude), and the timing will likely change …… but the coker must go in at any rate if the refinery is to survive.
 
Regards
Charlie Randall
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