October 28, 2011 at 10:04 am #2076
ConocoPhillips’ Illinois refinery project nears end
On Wednesday October 26, 2011, 2:50 pm EDT
* Start-up operations seen complete by mid-November
* Upgrades to boost Canadian heavy oil demand
Oct 26, 2011 (Reuters) – ConocoPhillips said on Wednesday it expects a major upgrade of its Wood River, Illinois, refinery, a project aimed at dramatically boosting capacity to process Canadian heavy oil, to be operational by mid-November.
In its third-quarter results, ConocoPhillips said construction on the coker and refinery expansion project is on track to be completed this month, and start-up activities will be complete by the middle of next month, at a total project cost of $3.8 billion.
ConocoPhillips and its 50-50 partner Cenovus Energy Inc , the oil sands producer, are adding equipment allowing them to process 130,000 barrels a day more of heavy oil. It will lift the capacity of those grades to 240,000 bpd.
Oil traders have said the prospect of more demand as a result of the project has already narrowed the discount of the Canadian crude against benchmark light oil in the cash market.
October 28, 2011 at 10:06 am #4856
Here is update on Cenovus-COP Oilsands JV Woodriver Refinery & Coker Expansion projecting Startup mid-Nov this year with (two 30ft drum, Bechtel-COP Tech) Coker construction completing in October.
The last update reported that the CORE project upgrade (expand crude capacity 306-360MBD) was 90% complete in Dec 2010 with coker capacity expanded to total 81-83MBD (59-65 MBD new Woodriver coker added to existing 3 drum Hartford 16MBD coker).
October 28, 2011 at 3:35 pm #4852
Man I screwed up on comments WRN update Number drums for Woodriver = its 4 drums not 2 …… but since no one caught it. I thought better send out correction.
BTW -to make up for error I was able to find Pictures (PDF from Dec 2010 when drums were being set) – hope someone Fluor/COP/Bechtel/ ect can send me completed coker picture. Hint Hint
<Here is link to PDF –http://woodriverrefinerycap.com/pdfs/CORE%20PROJECT%20PROCEEDING%20ON%20SCHEDULE%20Rev%201.pdf >
Also as bonus here are some feedback questions CORE WRN project and guess/answers….so far:
1) why such lag from 90% complete Dec 2010 to S/up Nov 2011 for 10%?
Actually it was almost 98% done in news update June 2011. One contact expects they have run into normal construction problems (remember there were some permitting issues with the enviros holding the project up when drums were already at site)…and that union area is the East St. Louis local, tough place to do anything.
Also suspect was overweight on coker construction part – which is usual longest lead time unit) …. but also could do with low 1H 11 margins between Bitumen/Hvy & Crazy WTI not wanting s/up earnings (on $3.6-4.3Bn project/$2Bn Coker) look really bad. Also could be some lag with CA Prod/PL linkup lag ($5.2Bn Keystone PL).
2) Why didn’t say anything about the WRN Refinery & add Coker Phase II expansion update – 2nd WRN coker (+$1.6Bn) wonder if its been canceled or pushed out due focus change. Same thing for Hartford Coker upgrade (were going replace 3 drum with 4 drum unit) which was somewhere between two confusing what coker was expanding?
Contact thinks most companies would have a pause while going through a restructuring like CoP. I think you will see downstream projects finishing up, but not see new megaprojects launched until after the split.
I expect didn’t cancel with Cenovus as JV partner but….could push out timeline into later coker cycle.
3) What will be petcoke production level and who has signed up for it?
I asked one COP marketing contacts at Argus conference if he could comment on quantity or supply contracts on new coke but of course the answer was no since it hasn’t been released.
I believe the petcoke tons production will be in 5,000-6,000 tpd range – one my key interest is if they will keep option make some batch marginal anode with Hartford coker (my guess is…. not likely).
4) What ever happened to Egas Sweeny Petcoke Gasification project and the Egas SNG Coal Kentucky project (was going blend some Petcoke from WRN coker with peabody coal)? Was it bystander kill as result environmental attacks or economic kill off?
It is now public that E-Gas is going to the new COP Downstream company.
The Sweeny permit is still going through the process (everything in that office is slow because of EPA-Texas battle).
The Kentucky project (with Peabody) actually triumphed over a Sierra Club appeal earlier this year….However, both of those projects had CO2 storage (CCS) in anticipation of climate change legislation that never happened. Now with natural gas at $4 and CO2 at $0, there is not a current economic driver. Both projects are still alive and letting development crawl forward though, not cancelled.
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