Utah OK’s Refinery Expansion

Friday, November 22, 2013 @ 05:11 PM gHale


HollyFrontier Corp.’s proposed heavy crude processing project at the company’s 31,000-b/d Woods Cross refinery, north of Salt Lake City gained approval from the Utah Department of Environmental Quality’s Division of Air Quality (UDAQ).

UDAQ issued its final approval order to HollyFrontier Nov. 18 after its review of public comments on revised modifications to the project submitted to the agency during a 45-day period that lasted from June 1 to July 25.

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Intended to boost the Woods Cross refinery’s capability to process black wax from the Uinta basin, the project includes the addition of a crude processing unit, a fluid catalytic cracking unit, a polygasoline unit, a hydro-isomerization unit for lube oils, crude unloading bays, several storage tanks, and additional wastewater treatment, according to UDAQ’s web site.

Phase 1 of the proposed expansion will increase processing capacity at the refinery to 45,000 b/d and will get support via a 10-year agreement with Newfield Exploration Co. for the supply of 20,000 b/d of black and yellow wax crude oil from the Uinta basin.

Following the completion of Phase 1 in early 2015, a second phase of the expansion, expected wrap up in 2016, would lift the refinery’s processing capacity to 60,000 b/d, according to HollyFrontier.

HollyFrontier has said the estimated capital spend for expansion of the Woods Cross refinery, including Phase 1 and potential Phase 2, will be $625 – $725 million.



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