January 30, 2006 at 2:00 am #4250
01/29/200 A $450 million expansion has United Refining Co. primed to flow more barrels of oil a day and increase its payroll.
Part of the expansion project for the Warren-based refinery includes putting in a coker, an operating unit that “allows us to run high sulfur, heavy crude as opposed to sweet crude,” according to Lawrence Loughlin, vice president of human resources at the company.
This will increase the refinery’s capacity from 65,000 to 70,000 barrels a day. This will also create 70 to 80 jobs at the refinery after the project is done. There will be about 500 construction jobs while building is under way. The project, which is also expected to reduce pollution, should be complete in 2008. Loughlin said there has already been site preparation.
The reason for the expansion is twofold – to meet mandated environmental standards for sulfur admissions and to run crude at a lower cost. “The crude we can run cost less than the sweet crude costs,” Loughlin said. “Goes to the bottom line of the company.” While the project has been in the works for a couple of years, they’ve made progress recently with getting zoning changes approved by the city. This includes changing zoning from residential to commercial, Loughlin said.
Six buildings, including ones used for locker rooms, fire safety and warehouse, will be torn down, too, to make room for the coker. “We are building new buildings to replace ones we have to tear down to make room for the coker,” Loughlin said.
January 30, 2006 at 2:33 am #7661
News release update on United Warren Refineries coker expansion – Zone changes & removal six buildings to provide coker site.
United is just one of 29 cokers in Planning/ Early EPC stage. Another 29 cokers are in EPC stage for 2006-2011 time frame – as mentioned on MAP
New cokers update – the Pace Global Services New Coker Additon tables are appearing in Argus early this month. If you do not take Argus & want the tables, contact me to purchase a copy of just the tables or subscribe to our Outlook for Coal & Petcoke 1st Quarter 2006.
Charles E. Randall
April 4, 2006 at 3:17 pm #7619
Given that United currently markets a fair amount of asphalt into Western & Central Pa, does it make sense that this addition to their refining complex will reduce their asphalt production in favor of more profitable products?
April 7, 2006 at 7:53 pm #7614
Makes sense. Not sure of the size unit United is building, but the logic of being able to produce more profitable products over asphalt seems to be the wave many others are following. I suppose their shareholders / bankers would like a higher return too.
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