Husky receives approval to begin Superior Refinery rebuild

Husky receives approval to begin Superior Refinery rebuild
Published: 1 October 2019 - 9 a.m.
By: Martin Menachery
The company has received the required permit approvals to begin reconstruction activities at the site and work is expected to begin immediately. Demolition of damaged equipment resulting from a fire in April of 2018 is now largely complete and the rebuild will take place over the next two years with an expected return to full operations in 2021.

“Our continued investment in this refinery and the community will support the Superior-Duluth regional economy through jobs, procurement, taxes and essential energy products for years to come,” said CEO Robert Peabody. “The Superior Refinery is an integral part of Husky’s Integrated Corridor business, which maximises margin capture across the value chain.

Husky acquired the Superior Refinery, located in Superior, Wisconsin, in 2017. As the first US refinery along the route of the Enbridge mainline, it is ideally positioned to process the company’s Canadian heavy crude feedstock into high-demand products such as gasoline, diesel and asphalt for the US Midwest market.

The refinery has about 200 employees and works with numerous contractors and suppliers in the region. During the construction phase, more than 350 contractor jobs are expected to be created at peak.

Key features of the rebuild project: (i) The modernised refinery will feature best available control technology, which incorporates advances in technology and efficiencies from across the refining industry. (ii) The facility will be more energy efficient, in full compliance with federal, state and local regulations. (iii) The refinery is expected to run in a continuous mode averaging 45,000 barrels per day (bbls/day), which includes a 5,000bbls/day average increase in heavy oil processing to 25,000bbls/day. (iv) The refinery will produce a full slate of products, including asphalt, gasoline and diesel, enhancing Husky’s ability to service the US Midwest market.

Local contractors and services will be employed in the rebuild whenever possible. Once the refinery is fully ramped up, Husky’s overall downstream throughput capacity is expected to be approximately 400,000bbls/day.

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