Friday, October 31st8.1°C
21625
23129

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

23015


Recent Trending




Today's Market
S&P TSX14458.69-68.88
S&P CDNX771.65-9.42
DJIA17195.42221.11
Nasdaq4566.138+16.912
S&P 5001994.65+12.35
CDN Dollar0.8932-0.0002
Gold1171.80-26.7999
Oil80.97+0.07
Lumber322.40-1.20
Natural Gas3.715+0.066

 
Okanagan Companies
Pacific Safety0.11+0.01
Knighthawk0.01-0.005
QHR Technologies Inc1.150.00
Cantex0.045-0.015
Anavex Life Sciences0.1711-0.0089
Metalex Ventures0.0350.00
Russel Metals32.22-0.35
Copper Mountain Mining1.97-0.05
Colorado Resources0.14+0.005
ReliaBrand Inc0.012-0.004
Sunrise Resources Ltd0.05+0.025
Mission Ready Services0.375+0.005

 





FEATURED Property
21148041511 MacLeay Court
5 bedrooms 3 baths
$614,900
more details
image2image2image2
Click here to feature your property
Please wait... loading


Empty nesting: financial issues

Now that the children have ‘left the nest’, it is a good time to step back and take stock of your financial situation. Being on your own will probably cut household costs to some extent, b...


Keep your haunted home safe

Eerie sounds, spooky lights and Jack-o’-lanterns aglow—extra efforts at Halloween will keep visitors coming back for both tricks and treats. However, to keep the fun going, it’s imp...


What I learned in China

Photo: ContributedI will never be an expert on China. It is just too big, too complex and too old with layers of history and meaning that would take several lifetimes to unravel. As I said to my hosts...

_








Member of BC Press Council


23691