Husky plans $300 M upgrade for Ohio refinery to process heavy crude

CALGARY -- Husky Energy has sanctioned a new crude oil flexibility project at its refinery in Lima, Ohio which will allow for the processing of up to 40,000 bpd of heavy crude feedstock from Western Canada starting in 2017.

The estimated cost of the upgrade is approximately $300 million and will provide an efficient and cost effective way to process a greater variety of crudes.

The project will include modifications to the coker and processing units and will maintain the refinery's ability to refine light crude oil. Engineering work is underway and the equipment upgrades are scheduled to take place during planned turnarounds in late 2015 and late 2016.

The project is part of Husky's focused integration strategy and supports the company's growing heavy oil business in Western Canada, where a strong portfolio of existing and planned projects is expected to increase thermal oil production to 55,000 bpd in 2016. 

It is also aligned with Husky's program to enhance its ability to respond more quickly and efficiently to market conditions by increasing feedstock, product and market access flexibility in its refining segment.