Utah approves HollyFrontier’s refinery expansion

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

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

Intended to boost the Woods Cross refinery’s capability to process black wax from the Uinta basin, the proposed 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 be supported by 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 (OGJ Online, Jan. 4, 2012).

Following the completion of Phase 1 in early 2015, a second phase of the expansion, expected to be completed by 2016, would lift the refinery’s processing capacity to 60,000 b/d, according to a HollyFrontier investor presentation from September.

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 (OGJ Online, Mar. 4, 2013).

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