Tuesday, October 21st12.4°C
23836
23719

Husky Energy OKs $300-million project so Ohio refinery can process heavy crude

CALGARY - Husky Energy Inc. (TSX:HSE) gave the green light Monday to a $300-million equipment upgrade at its refinery in Lima, Ohio, so it can process heavy crude from Western Canada.

The project will allow the refinery to process up to 40,000 barrels per day of heavy crude, starting in 2017.

Less than a month ago, Husky announced it was going ahead with two Saskatchewan heavy oil projects with total output of 20,000 barrels per day — part of a plan to boost thermal oil production to 55,000 barrels per day in 2016.

Meanwhile, the first phase of its 60,000-barrel-per-day Sunrise oilsands project is scheduled to start up later this year.

Heavy oil produced in Western Canada tends to trade at a discount to light oil because of its lower quality and distance to market.

That's affected the bottom lines of producers, who get a lower price for their crude. But it's been helpful for refiners, which get a cheaper feedstock.

Integrated companies like Husky that both produce and refine crude are buffered somewhat against volatile swings in commodity prices.

The refinery will maintain its ability to refine light crude oil, meaning it will have the flexibility to respond to shifting market conditions, Husky said.

Engineering work on the project is already started and the equipment upgrades are expected to be done in late 2015 and late 2016.

Husky, controlled by Hong Kong billionaire Li Ka-shing, is involved in oilsands and offshore production, refining and retailing.

The Canadian Press


Read more Business News

23028


Recent Trending




Today's Market
S&P TSX14337.77+110.09
S&P CDNX811.351.22
DJIA16414.0614.39
Nasdaq4359.836+43.761
S&P 5001914.40+10.39
CDN Dollar0.8913+0.0054
Gold1253.00+8.30
Oil81.62+0.24
Lumber330.40-0.50
Natural Gas3.649-0.021

 
Okanagan Companies
Pacific Safety0.10-0.01
Knighthawk0.01-0.005
QHR Technologies Inc1.12+0.01
Cantex0.055-0.025
Anavex Life Sciences0.191+0.001
Metalex Ventures0.050.00
Russel Metals32.28-0.07
Copper Mountain Mining1.99+0.05
Colorado Resources0.15+0.005
ReliaBrand Inc0.0111-0.0019
Sunrise Resources Ltd0.060.00
Mission Ready Services0.450.00

 



20759

FEATURED Property
19503721 - 5235 Buchanan Road
2 bedrooms 3 baths
$1,490,000
more details
image2image2image2
Click here to feature your property
Please wait... loading


Keep it rubber side down

This time of year, I always worry about which friends of mine will get caught going off the road in adverse weather conditions. With a little preparation most accidents can be avoided. Having won the...


Big bank predicts rate hike

Photo: Thinkstock.comThe end of record-low rates is nigh, according to one major bank, which has taken a stance and predicted when the Bank of Canada will raise its long-standing overnight rate. &ldq...


Experts share strategies in Kelowna

The third week in October is “Small Business Week”, a week dedicated to supporting local, small businesses. The week was designed to bring awareness to Canadians about the role small busin...

_



23803

23545


Member of BC Press Council


22771