Delek plots Krotz Springs refinery improvements

Delek US Holdings Inc. will invest $150 million in a series of projects over the next 5 years to improve operations at its 74,000-b/sd refinery in Krotz Springs, La. The proposed enhancement projects at the refinery will include infrastructure improvements, plant construction and renovations, and installation of new machinery and equipment, the Louisiana Economic Development said.

Delek US Holdings Inc. will invest $150 million in a series of projects over the next 5 years to improve operations at its 74,000-b/sd refinery in Krotz Springs, La.

The proposed enhancement projects at the refinery will include infrastructure improvements, plant construction and renovations, and installation of new machinery and equipment, the Louisiana Economic Development (LED) said.

While further details regarding the projects were not disclosed, LED confirmed Delek US considered its other refining sites in Texas and Arkansas before choosing the Louisiana refinery for the new investment, for which LED offered the operator a competitive incentive package—including a performance-based grant of up to $7.5 million, payable over 4 years, for enhancing the dock terminal that serves the company at the Port of Krotz Springs on the Atchafalaya River—to secure.

Announcement of the Krotz Springs enhancement projects follows Delek US’s completion of its previously announced 6,000-b/sd alkylation unit to add product flexibility and increase margin potential at the refinery (OGJ Online, Nov. 29, 2018; Jan. 9, 2018).

Completed in early April at a total cost of $138 million, the alkylation project has improved overall refinery flexibility by converting lower-priced isobutane into higher-value alkylate, enabling production of multiple summer grades of gasoline as well as increasing octane for production of premium gasoline, Delek US said in its May investor presentation.

The operator additionally told investors in May the Krotz Springs refinery is exploring the possibility of producing low-sulfur marine fuel in the future.

Contact Robert Brelsford at rbrelsford@ogjonline.com.

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