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PROCESSING — Quick Takes
IOC plans new refineries, major expansion
Indian Oil Corp. Ltd., India's largest refiner, plans to raise its total refining capacity to 2.46 million b/d by 2020-21 with two new refineries and a major expansion.
At a meeting in Vadodara, Gujarat, Rajkumar Ghosh, director (refineries), disclosed early plans for construction of a 300,000 b/d refinery in the western part of the country.
He also said the 274,000 b/d Gujarat Refinery at Koyali, Vadodara, would be expanded to 360,000 b/d by 2016-17 and 460,000 b/d by 2020-21.
Under construction by the state-owned company now is the 300,000 b/d Paradip Refinery in Orissa (OGJ, Nov. 22, 2010). The Ministry of Petroleum and Natural Gas estimates the refinery will start up in first-quarter 2013.
The company will have 10 refineries when the grassroots projects are complete.
CVR Energy plans to buy refinery in Oklahoma
CVR Energy Inc. plans to buy Gary-Williams Energy Corp. and its Wynnewood, Okla., refinery and related assets for $525 million in a transaction expected to close by yearend. Closing remains subject to regulatory approvals.
CVR Energy said acquisition of the 52,500-b/cd Wynnewood refinery will increase the scale and diversity of CVR Energy's refining operations.
Based in Sugar Land, Tex., CVR Energy already owns 120,000 b/cd refinery in Coffeyville, Kan. Gary-Williams Energy is based in Denver with marketing and operations in Oklahoma.
TRANSPORTATION — Quick Takes
ConocoPhillips sells Seaway pipeline stake
ConocoPhillips has entered into agreements to sell its interests in two US pipeline companies for $2 billion. In its first sale, ConocoPhillips will divest its interest in Seaway Crude Pipeline Co. to Enbridge Holdings (Seaway) LLC, a subsidiary of Enbridge (US) Inc., which will reverse its flow to bring crude form Cushing, Okla., to the US Gulf Coast.
Enbridge Inc. and Enterprise Products Partners LP (EPP) agreed to reverse the direction of oil flows on Seaway with an initial capacity of 150,000 b/d in second-quarter 2012. Following pump station additions and modifications, anticipated to be completed by early 2013, the capacity of the reversed Seaway Pipeline will reach 400,000 b/d.
The companies expect the reversed Seaway to be fully contracted and will conduct an open season to validate shipper support for an expansion of Seaway, through looping or twinning. The 670-mile Seaway system includes the 500-mile, 30-in. OD Freeport, Tex., to Cushing, Okla., long-haul system, and the Texas City Terminal and Distribution System, serving refineries in the Houston and Texas City areas. SCPC also includes 6.8 million bbl of crude oil tankage on the Texas Gulf Coast and four import docks at two sites.
Enbridge and EPP also plan to build a 45-mile pipeline linking Seaway directly to EPP's ECHO crude oil storage terminal southeast of Houston. The joint-venture partners estimate costs to reverse the line and construct supporting lateral and related facilities at roughly $300 million.
Enbridge bought ConocoPhillips's 50% interest in Seaway for $1.15 billion. EPP will continue to operate the pipeline system and storage facilities. Enbridge and ConocoPhillips expect the transaction to close in December or early 2012, subject to customary approvals.
Separately, ConocoPhillips also will sell a 16.55% interest in Colonial Pipeline Co. and Colonial Ventures LLC to Caisse de depot et placement du Quebec. ConocoPhillips expects the transaction to close first-quarter 2012 following approval by shareholders in Colonial. ConocoPhillips described the sales as part of an ongoing effort to divest noncore assets.
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