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Chevron Refinery Upgrade Is Third Planned For Salt Lake Metropolis

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Chevron Corp. has launched a serious effort to upgrade its crude oil processing unit at its Salt Lake City refinery.

The announcement earlier this week by the large U.S. power company marks the third planned refinery growth for the area revealed in current months.

The improve, anticipated to be accomplished in summer time 2014, is projected to value round $83 million.
“This mission will assist us improve both the reliability and effectivity of our oil-processing tools, a few of which dates again to the early days of the refinery’s profession,” mentioned Greg Hardy, Chevron’s spokesman in Salt Lake City.

The Chevron refinery at 2351 N. 1100 West started operating in 1948, shortly after the invention of the Rangely crude oil field in western Colorado that was an vital supply of feedstock for the plant.

Hardy said the improve can be accomplished in phases, which implies that the refinery will stay in manufacturing whereas the work is under method.

Chevron isn’t the one firm updating or expanding its refinery operations in Utah.
Tesoro Corp. introduced crude oil in market in December that it planned to speculate $180 million to expand crude crude oil in market oil processing at its refinery close to the Chevron facility. And that was followed less than a month later by HollyFrontier saying it planned to take a position $225 million over the next two years to increase production by 45 % at its Woods Cross refinery.

Lee Peacock, president of the Utah Petroleum Affiliation, stated those investments recommend the businesses are anticipating the market for their merchandise will be rising in Utah, in addition to in the encircling states they serve.

“The tone of our state’s financial system is such that firms are willing to invest in Utah as a result crude oil in market of they see a bright future,” he said.

HollyFrontier and Tesoro and have indicated their plans are to more and more make use of the black-wax and yellow-wax crude oils that are being produced in higher quantities in jap Utah’s Uinta Basin.

Hardy said Chevron’s project will not improve the refinery’s capacity — it processes forty five,000 barrels per day — but will allow it to more easily handle a wider range of regionally and nationally produced crudes, corresponding to these from jap Utah.

The waxy crudes come out of the bottom at a consistency much like petroleum jelly. In contrast to the so-referred to as light, sweet crudes which can be common feedstocks for refining, the excessive-wax varieties are thick and viscous, and usually aren’t transported by pipeline. As an alternative, they usually are shipped by insulated tankers and must arrive at their destinations within 4 to eight hours so they do not solidify. If that happens, the tanker’s cargo must be warmed up before it can be pumped into the refinery.