US-based refiner HollyFrontier says it will expand capacity
by 45% at its 31,000 bpd refinery in Woods Cross, Utah,
reaching 45,000 bpd by the expected completion in late
The expansion scope includes the relocation and revamp of
crude, fluid catalytic cracking, and polymerization units from
a subsidiary of Western Refinings Bloomfield refinery in New Mexico to Woods
Cross, as well an expansion of the Woods Cross diesel
hydrotreater and investment in associated utilities and
HollyFrontier has signed a definitive agreement for the
purchase of the Bloomfield units with Western Refining, it said.
The company expects incremental yields from the expansion project to be approximately 60%
gasoline and 40% diesel, with expansion costs approximately $225
The company also expects that this expansion will have a payback period
of less than two years, it said.
In conjunction with the expansion, HollyFrontier said it
signed a 10-year, 20,000 bpd crude oil supply agreement with
Newfield Exploration Co.
This agreement, which commences upon completion of the
expansion, will supply black and yellow wax crude oil produced
in the nearby Uinta Basin region to the Woods Cross refinery, which currently has
capacity to process approximately 10,000 bpd of these
Upon completion of this expansion, the Woods Cross refinery
will be able to process approximately 24,000 bpd of waxy Utah
crudes, according to the company.
This expansion and crude oil supply agreement, and expected
completion timeline, are subject to HollyFrontier successfully
obtaining the necessary permits and regulatory approvals.
"The project to expand our Woods Cross refinery supported by the Newfield
supply agreement will allow us to significantly increase
earnings and production from Woods Cross, said Mike
Jennings, CEO of HollyFrontier.
We are excited to be expanding our relationship with
Newfield around this growing regional crude source, he
With the recent startup of the UNEV pipeline, we will
have the option to market additional products from this expansion to Cedar City, Utah and
Las Vegas, as well as to our traditional customers in Salt Lake
City and the Inter-Mountain West.