BP plans $3 Billion project to refine more Canadian Heavy Crude Oil
Posted: 02 October 2006
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BP has entered the final planning stage of a $3 billion investment in Canadian heavy crude oil processing at its Whiting Refinery located in northwest Indiana .
BP America Inc. Chairman and President Bob Malone said the company intends to reconfigure its Whiting Refinery so most of its feedstock can be heavy Canadian crude oil. Reconfiguring the refinery also has the potential to increase its production of motor fuels by about 15 percent, which is about 1.7 million additional gallons of gasoline and diesel per day.
"BP is pleased to invest in a project important to the economies of both the United States and Canada ," Malone said. "BP's investment increases the diversity and security of oil supplies that can be refined into gasoline, diesel and other petroleum products in demand by consumers in the Midwestern United States. It also provides a significant market for Canada 's abundant heavy crude oil resources."
The Whiting Refinery currently produces about 4.5 billion gallons of transportation fuels each year, enough to supply more than 5 million vehicles. "After our investment, the refinery will have the potential to supply motor fuels to about 6 million automobiles," Malone said.
Construction of the project is tentatively scheduled to begin in 2007 and be completed by 2011, pending regulatory approvals.
The project will increase capacity for coking, hydrogen production, hydrotreating and sulfur recovery. The replacement processing units and enhancements to existing refinery units will increase Canadian heavy crude oil processing capability by about 260,000 barrels per day.
Dan Sajkowski, BP Whiting Refinery Manager and Vice President of BP Products North America Inc., said the company's planned investment is expected to create jobs for approximately 2,500 workers during the peak of its three-year construction phase and 60 to 80 permanent full-time employees to operate enhanced processing units and other refinery improvements. |
