Husky advances Superior refinery rebuild, revamp

Husky Energy Inc. has received required permit approvals to begin reconstruction of its 47,500-b/cd refinery in Superior, Wis., after a fire that broke out at the site on Apr. 26, 2018 (OGJ Online, Apr. 26, 2018).

Demolition of damaged equipment resulting from the fire is now largely completed, and reconstruction is scheduled to begin immediately, Husky said.

The rebuild will occur over the next 2 years, with the refinery scheduled to return to full operations sometime in 2021, the operator said.

Key features of the rebuild and modernization project will include:

• Implementation of best available control technology (BACT) incorporating advances in technology and efficiencies from across the refining industry.

• Increased energy efficiency, in full compliance with federal, state, and local regulations.

• Configuration for the refinery to run in a continuous mode averaging 45,000 b/sd, which includes a 5,000-b/d average increase in heavy oil processing to 25,000 b/sd.

• Work to equip the refinery to produce a full slate of products, including asphalt, gasoline, and diesel, enhancing Husky’s ability to service the US Midwest.

Once the refinery is fully ramped up, Husky said it expects the overall downstream throughput capacity across its refineries to reach 400,000 b/sd.

“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 Rob Peabody, Husky’s chief executive officer.

The Superior refinery, which Husky acquired in 2017 and is the first US refinery along the route of the Enbridge mainline, is equipped to process the operator’s own Canadian heavy crude feedstock into gasoline, diesel, and asphalt for the US Midwest (OGJ Online, Nov. 9, 2017).

Before the April 2018 fire, Husky previously committed to investing in key capital projects to improve operational efficiency of the refinery, including former owner Calumet Specialty Products Partners LP subsidiary Calumet Superior LLC’s earlier planned Superior Flexibility Project (SFP) (OGJ Online, Aug. 14, 2017).

Announced in early 2017, the SFP proposed upgrades to increase the plant’s ability to process a wider variety of crudes to enable improved product yield, recovery, and overall operational performance as well as capture higher margins following the refinery’s scheduled 2018 turnaround, during preparations for which the 2018 fire occurred.

Contact Robert Brelsford at [email protected].