Husky to buy Valero's Lima, Ohio, refinery

Husky Energy Inc. has agreed to buy a 165,000 b/d refinery in Lima, Ohio, from Valero Energy Corp.

By OGJ editors
HOUSTON, May 3 -- Husky Energy Inc. has agreed to buy a 165,000 b/d refinery in Lima, Ohio, from Valero Energy Corp.

Husky Pres. and Chief Executive Officer John C. S. Lau said the company would integrate the refinery with "future growth of heavy crude oil and oil sands production."

The company produces more than 100,000 b/d of heavy oil in the Lloydminster region of Alberta and Saskatchewan and last year started production from the Tucker oil sands project in the Cold Lake area. Tucker output is to reach 30,000 b/d.

Husky operates a 28,000-b/d asphalt refinery in the Lloydminster area that also produces distillate used in a heavy-oil upgrader and condensate blended with heavy oil production. It also operates a 12,000-b/d light oil refinery in Prince George, BC, and ethanol plants in Minnedosa, Man., and Lloydminster.

For the Lima refinery it will pay $1.9 billion plus net working capital estimated at $200 million.

According to Oil & Gas Journal's latest Worldwide Report, the refinery's processing capacities include delayed coking 20,700 b/cd, fluid catalytic cracking 36,000 b/d, catalytic reforming 49,500 b/d, and catalytic hydrocracking 23,400 b/cd (OGJ, Dec. 18, 2006, p. 56).

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