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BP to Spend $3 Billion on Whiting, Indiana, Refinery Upgrades

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This topic contains 1 reply, has 1 voice, and was last updated by  Charles Randall 14 years, 5 months ago.

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  • #4131

    Charles Randall
    Participant

    Sept. 20 (Bloomberg) — BP Plc, Europe’s second-largest oil company by sales, will spend $3 billion to upgrade its Whiting, Indiana, refinery to process more Canadian crude and benefit from increasing production from deposits buried in northern Alberta.
     
    The refinery, the fifth-largest in the U.S., will run almost entirely on heavy Canadian crude, including supplies extracted from oil sands, once the project is finished in 2011, BP America Inc. President Robert Malone said in a press conference today. Construction is expected to begin in 2007.
     
    U.S. refiners, including Valero Energy Corp., the nation’s largest, have invested in plant upgrades to handle heavy or high- sulfur oil from Canada and Mexico. Such oil is typically cheaper, quicker to ship and less susceptible to supply disruptions than crude from the Middle East.
     
    The Whiting refinery, which opened in 1890 on the southern shore of Lake Michigan near Chicago, has capacity to process about 405,000 barrels of oil a day, making it BP’s second largest in the U.S., after its Texas City, Texas, plant.
     
    To contact the reporters on this story: Bruce Blythe in Chicago at bblythe@bloomberg.net .

  • #7535

    Charles Randall
    Participant

    The current update has BP spending $3B to shift its second largest refinery (~fifth largest US refinery) its crude slate to almost entirely heavy Canadian crude.  The construction is to start in 2007 and complete by 2011.
     
    The last update had the BP Whiting Refinery at a $1-2B upgrade and capacity on the +400 MBD refinery use primarily Canadian heavy crude by 2009.  I estimated it might require a new or revamped coker capacity of 30 MBD making additional 475 kmt/yr of 6.5% fuel coke, similar size to the existing coker production today of 1,300 TPD (430 kmt/yr)  5% Sulfur Fuel coke.
     
    One News release indicates that the Indiana Economic Development Corporation offered $450,000 in training grants and $1.2 million in tax credits based on job creation and capital investment to attract the project

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