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HollyFrontier Spend $38MM connect Tulsa Refineries

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This topic contains 1 reply, has 1 voice, and was last updated by  Charles Randall 9 years, 8 months ago.

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  • #2034

    basil parmesan
    Participant

    HollyFrontier awards $38 million contract for Tulsa refinery upgrades

    By Staff Reports
    Published: 11/22/2011 11:55 AM

    A Virginia firm will design and build about $38 million in upgrades to the two HollyFrontier Corp. refineries in Tulsa starting in 2013.

    Science Applications International Corp. of McLean, Va. will build a new sodium hydrosulfide unit, amine unit and complete a portion of an interconnecting pipe between the two facilities in west Tulsa, according to a statement from SAIC.

    The work will be done primarily in Tulsa, the company said.

    Holly Corp. purchased the two refineries separately in 2009 from Sunoco and Sinclair. They now operate them as one unit connected by pipelines.

    Holly merged with Frontier Oil Corp. to form HollyFrontier earlier this year.

    Holly Energy Partners LP, the subsidiary of HollyFrontier, has budgeted about $48 million on five pipeline interconnects. The parent company also is in the midst of spending up to $70 million on various improvements, including a new diesel hydrotreater

  • #4824

    Charles Randall
    Participant

    Here is update on activities/investments of HollyFrontier for its Tulsa Refineries (previous Sunoco & Sinclair Tulsa plants).
    HollyFrontier seems have wrong focus point for its merged Tulsa refineries both were ~sweet crude refineries and only one had a coker (Sunoco). Prior to purchase & merger Sinclair was looking to add coker (drums were/are still Tulsa warehouse) and Sunoco was trying upgrade its undersized coker to handle more profitable sour crude. Holly is not going to be able to bring in any heavy Canadian Bitumen crude unless it upgrades its bottom processing whether they are connected or not.

    Now that Enbridge has purchased & reversed COPs Seaway pipeline to take trapped Cushing crude and that is going to let WTI/Bakken/Canadian crude prices rise to real market value which puts pressure back on Midcontinent sweet crude refiners like HollyFrontier.

    Regards

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