Holly to buy, upgrade refinery in Tulsa

April 16, 2009
Holly Refining & Marketing has agreed to buy and plans to add diesel desulfurization capacity at Sunoco's 85,000-b/cd refinery in Tulsa.

By OGJ editors
HOUSTON, Apr. 16 -- Holly Refining & Marketing has agreed to buy and plans to add diesel desulfurization capacity at Sunoco's 85,000-b/cd refinery in Tulsa.

The companies have signed a definitive agreement with a purchase price of $65 million. Closing of the deal is set for June 1.

Sunoco had announced last November that it was canceling plans to upgrade the refinery and that it would seek a buyer or operate the facility as a terminal.

According to Oil & Gas Journal's 2008 Worldwide Refining Report, the refinery has 8,500 b/cd of delayed coking capacity, 17,500 b/cd of catalytic reforming capacity, and 24,000 b/cd of catalytic hydrotreating capacity for reformer feeds.

In addition to fuels, the refinery produces 8,500 b/cd of lubes and 350 tons/day of coke. It yields about 40% diesel and jet fuel.

Holly Corp. Chairman and Chief Executive Officer Matt Clifton said the buyer will install a diesel desulfurization unit by 2011 at an expected cost of $150 million.

Holly operates the 85,000-b/cd Navajo refinery in Artesia, NM, and a 26,400-b/cd refinery in Woods Cross, Utah.

Sunoco's other refinery locations and capacities are Philadelphia, 330,000 b/cd; Marcus Hook, Pa., 175,000 b/cd; Eagle Point, NJ, 150,000 b/cd; and Toledo, Ohio, 140,000 b/cd.