BP Plans $3 Billion Reconfiguration of Midwest Refinery to Handle More Canadian Oil Sands Crude
22 September 2006
BP has entered the final planning stage of a $3 billion investment in Canadian heavy crude oil processing at its Whiting Refinery located in northwest Indiana.
BP America Inc. Chairman and President Bob Malone said the company intends to reconfigure its Whiting Refinery so most of its feedstock can be heavy Canadian crude from the oil sands. Reconfiguring the refinery also has the potential to increase its production of motor fuels by about 15%, which is about 1.7 million additional gallons of gasoline and diesel per day.
The Whiting Refinery currently produces about 4.5 billion gallons of transportation fuels each year, enough to supply more than 5 million vehicles.
BP is pleased to invest in a project important to the economies of both the United States and Canada. BP’s investment increases the diversity and security of oil supplies that can be refined into gasoline, diesel and other petroleum products in demand by consumers in the Midwestern United States. It also provides a significant market for Canada’s abundant heavy crude oil resources. After our investment, the refinery will have the potential to supply motor fuels to about 6 million automobiles.—Bob Malone
Construction of the project is tentatively scheduled to begin in 2007 and be completed by 2011, pending regulatory approvals. The proposed Whiting Canadian extra heavy oil project includes installing the following major process units and upgrades to existing equipment:
A world-scale coking unit, a revamped crude distillation unit and petroleum coke handling facilities that triple resid conversion capacity;
A hydrogen production plant;
A gas oil hydrotreater and revamped existing hydrotreaters to maintain compliance with sulfur specifications for fuels;
Sulfur recovery facilities; and
Refinery infrastructure facilities to support the additional heavy crude oil processing.
The replacement processing units and enhancements to existing refinery units will increase Canadian heavy crude oil processing capability by about 260,000 barrels per day.
In 2005, BP announced plans to invest more than $130 million on new ultra low-sulfur diesel facilities at the Whiting refinery with the addition of a new Distillate Hydrotreater (DHT). The new unit has the capacity to produce approximately 36,000 barrels per day of the ultra low-sulfur diesel product.
The Whiting refinery is BP’s second-largest and the largest in the Midwest region. The Whiting refinery currently produces approximately 16 million gallons of product daily, half of it gasoline, and about one-quarter of it diesel. Other major products produced beside diesel fuel include furnace oil, asphalt, propane, xylene and petroleum coke.
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