This topic contains 1 reply, has 1 voice, and was last updated by 
-
Posts
-
West Coast refiner Tesoro to grow in Anacortes
BLOOMBERG NEWS, March 28, 2006
Tesoro Corp., the nation’s second-biggest oil refiner in the West, expects construction of new refinery units to increase cash flow by about $385 million a year when the projects are completed in late 2007 or early 2008, a company executive said.
Construction of new cokers at Tesoro’s refinery in Anacortes and the Golden Eagle refinery in Martinez, Calif., will enable the company to process less-costly grades of oil, Bill Haywood, senior vice president for refining, said in an interview last week.
That will increase annual earnings before interest, taxes, depreciation and amortization by about $385 million, he said.
“That flexibility helps reduce the overall cost of fuel stocks,” Haywood said. An upgrade to a refinery in Kenai, Alaska, will enable that plant to increase output of low-sulfur diesel, he said.
Tesoro follows other refiners, including Valero Energy Corp., Premcor Inc., ConocoPhillips and Marathon Oil Corp., in upgrading units to refine cheaper grades of crude oil.
Tesoro plans to more than double capital spending, to $670 million this year from $327 million in 2005 amid the refinery projects, Haywood said.
The company operates six refineries in the Western United States with a combined capacity of 562,000 barrels per day, according to the Energy Department. Chevron Corp. is the largest refiner in the region with a capacity of about 600,000 barrels.
Shares of Tesoro rose 56 cents, or 0.9 percent, to $65.54 in New York Stock Exchange composite trading.
The stock has risen 6.5 percent this year after almost doubling in value in 2005.
A coker applies heat and pressure through a network of pipes and towers to convert heavier petroleum-based components into lighter oils used to make gasoline and diesel.
The process also produces petroleum coke, which is used as a fuel for power generation and steel making.
The new cokers will enable refineries to process lower-cost heavier oil grades such as Maya crude, Haywood said.
The two-drum Anacortes coker, being built at a cost of $250 million, will be capable of processing about 25,000 barrels of oil a day, Haywood said.
The four-drum Golden Eagle coker will process up to 50,000 barrels a day. The initial cost estimate of $275 million for that unit is likely to rise, he said
Charles E. Randall
Pace Global Energy Services
Progect Manager
808 Travis Street Suite 1107
Houston, TX 77002
Direct: 713-315-5666
Mobile: 281-813-2669
Fax: 713-222-7520
Email: randallc@paceglobal.com -
Update on the Tesoro New Additon Cokers at Anacortes = 25 MBD & 2 drums @ $250mm,
Golden Eagle = 50 MBD & 4 drums @ $275mm to be completed by ~4Q 2007 or 1Q 2008
Regards
Charlie Randall
You must be logged in to reply to this topic.