Tesoro Corporation Announces the Salt Lake City Expansion and Feedstock Advantage Project

abarrelfull wrote on 05 Dec 2011 14:39
Tags: refinery tesoro usa

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Tesoro Corporation (NYSE:TSO) today announced its intention to invest approximately $180 million on a capital project at the Salt Lake City, Utah refinery that will expand crude oil throughput capacity by 7%.

The project allows the Company to increase throughput of transportation-advantaged black wax and yellow wax crude oil to 21 mbpd, an increase of over 100%. The project also includes capital for conversion unit upgrades designed to drive a nearly 3% increase in clean product yield at the refinery. Based on current estimates, the project has a payback period of less than two years and is expected to be completed in two stages in 2013 and 2014, subject to required permitting.

In conjunction with this project, Tesoro has entered into a crude oil supply agreement with Newfield Exploration Company to provide 18 mbpd of black wax and yellow wax crude oil for a seven-year period, beginning in 2013.

"This project is another great example of our ability to invest capital in high-return short payback projects, providing Tesoro the unique opportunity to capture incremental feedstock advantages within our system," said Greg Goff, President and CEO. "We are excited about our partnership with Newfield around this growing supply of domestic crude oil and look forward to both companies enjoying the strong economic benefits of the opportunity."

• Tesoro Corporation Announces the Salt Lake City Expansion and Feedstock Advantage Project

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