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BP completes refinery upgrade to use more Canadian crude
Fuel Fix ^ | December 18, 2013 | Zain Shauk

Posted on 12/18/2013 9:35:07 AM PST by thackney

BP has turned on a key new unit to process more Canadian oil sands crude at its Whiting refinery in Indiana, the British oil giant announced Wednesday.

The company has spent billions of dollars in recent years upgrading the facility, its largest. The last major milestone was the startup of the refinery’s new, 102,000 barrel-per-day coker, which began operating in November, the company said.

A coker is a processing unit that makes oils and other products used in chemicals or transportation fuels.

“The safe startup of this world-scale coker is the last major step in unlocking the full potential of the Whiting refinery for our shareholders,” said Iain Conn, chief executive of BP’s downstream segment, in a statement. “The reconfigured refinery now has the flexibility to greatly increase heavy sour crude processing, delivering an expected incremental $1 billion of operating cash flow per year, depending on market conditions.”

The Whiting refinery can process up to 413,000 barrels of oil per day.

The upgrade will let BP buy and process more oil sands crude from Canada, which is significantly cheaper than other crudes.

“The Whiting refinery project has been at the heart of our U.S. fuels strategy to operate sophisticated, feedstock-advantaged refineries tied to strong logistics and integrated into fuels marketing,” Conn said. “This world-class refinery is in the right location with the right equipment to process growing supplies of North American crude oil, including heavy grades from Canada.”


TOPICS: News/Current Events; US: Indiana
KEYWORDS: energy; refinery
This project started engineering/design back in 2008. It takes quite a while from deciding to proceed to actual start-up.

Foster Wheeler USA Wins Coker Contract For BP Whiting Refinery In U.S.
http://phx.corporate-ir.net/phoenix.zhtml?c=80422&p=irol-newsArticle&ID=1189337&highlight=

1 posted on 12/18/2013 9:35:07 AM PST by thackney
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A coker in the refinery process takes the bottoms left units. This thick, heavy residual oil is then thermally cracked to make more lighter-grade fuel. The stuff left over is solid and similar to coal.


2 posted on 12/18/2013 9:38:28 AM PST by thackney (life is fragile, handle with prayer)
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To: thackney

Can the BP refinery in Whiting take delivery of crude by water?


3 posted on 12/18/2013 9:55:08 AM PST by Mr. Lucky
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To: thackney

I looked and I can’t find the dang sand filter to keep out that Canadian sand. What’s up with that? LOL!


4 posted on 12/18/2013 9:56:57 AM PST by rktman (Under my plan(scheme), the price of EVERYTHING will necessarily skyrocket! Period.)
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To: thackney

An acquaintance of mine made many dollars as an electrician on that BP Whiting job the last few years.


5 posted on 12/18/2013 9:58:16 AM PST by nascarnation (Wish everyone see a "Gay Kwanzaa")
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To: thackney

More great news. Hop the muzzles in the middle eastt are saving their money.


6 posted on 12/18/2013 9:59:21 AM PST by catfish1957 (Face it!!!! The government in DC is full of treasonous bastards)
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To: thackney

if it’s for Canadian Crude perhaps they should name it the Seth Rogan Refinery...


7 posted on 12/18/2013 10:03:58 AM PST by Buckeye McFrog
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To: Mr. Lucky

Since Whiting is on the southern shore of Lake Michigan I would say yes


8 posted on 12/18/2013 10:06:17 AM PST by BobinIL
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To: Mr. Lucky
I'm not sure.

BP Whiting Refinery is located on the
southwestern shore of Lake Michigan and the
Indiana Harbor Ship Canal in the communities of
Whiting, East Chicago and Hammond, Indiana.

http://www.bp.com/liveassets/bp_internet/globalbp/STAGING/global_assets/downloads/A/abp_wwd_us_whiting_refining_fact_sheet.pdf

The refinery is fuel via pipeline but I think there are ship to pipeline docks in the area.

Are the Great Lakes the new transport lane for Alberta crude oil?
http://business.financialpost.com/2013/12/12/are-the-great-lakes-the-next-pipeline-for-alberta-crude-oil/?__lsa=64d5-a357


9 posted on 12/18/2013 10:11:38 AM PST by thackney (life is fragile, handle with prayer)
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To: nascarnation

I was part of the design team a few years ago.


10 posted on 12/18/2013 10:12:30 AM PST by thackney (life is fragile, handle with prayer)
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To: thackney

That refinery has been there for a long time. I recall when it was the Standard Oil refinery. I have lots of friends in The Region, most of them were kids of mill rats, but the refinery has been a big part of industry up there, too.

Given that it is such a large refinery with no real source of local crude to process, I was wondering earlier today if it would not be an ideal place to refine Canadian tar sands oil since Keystone XL is still not built. This answers that question.


11 posted on 12/18/2013 10:19:09 AM PST by henkster (Communists never negotiate.)
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To: henkster
This refinery is already fed by the Enbridge Canadian Pipeline Systems.

This should not be considered a replacement for Keystone XL. They are separate projects and the need is for both and more.


12 posted on 12/18/2013 10:24:07 AM PST by thackney (life is fragile, handle with prayer)
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To: thackney

Before her marriage to my son, my daughter in law was doing archeological site work for the Flanagan South pipeline in Illinois and Missouri.

And yes, we do still need Keystone XL.


13 posted on 12/18/2013 10:32:52 AM PST by henkster (Communists never negotiate.)
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To: Mr. Lucky

I’ve got a relative with contacts at the Whiting refinery; if Keystone is blocked, they’re prepared to expand rail traffic, which is already (I believe) bringing in a bunch of Canadian crude.

What is amusing is that hauling that stuff by rail car has got to be more environmentally problematic than piping it around.

And the enviro’s have already started gearing up against BP in Whiting; their shill in the Chicago Tribune, some jagoff named Michael Hawthorne, has already started agitating over the solid tailings from the process building up at storage sites on the shores of the nearby Calumet River.


14 posted on 12/18/2013 10:58:35 AM PST by Stosh
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To: thackney

So people can understand and be profitable off of that but the Obama administration can’t build a functioning website for over $600 million. Makes sense.


15 posted on 12/18/2013 11:14:23 AM PST by gura (If Allah is so great, why does he need fat sexually confused fanboys to do his dirty work? -iowahawk)
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To: thackney

Well thanks for contributing to commerce in the state of Indiana!


16 posted on 12/18/2013 11:15:35 AM PST by nascarnation (Wish everyone see a "Gay Kwanzaa")
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To: Stosh
I’ve got a relative with contacts at the Whiting refinery; if Keystone is blocked, they’re prepared to expand rail traffic

The Keystone XL won't feed this area via pipeline connections. It goes east to Patoka, Illinois but the pipelines North of it flow towards the south.

17 posted on 12/18/2013 11:26:07 AM PST by thackney (life is fragile, handle with prayer)
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To: Stosh

I hope Mr. Jagoff or Hawthorne or whatever his name is able to buy a nice Christmas for his family with all that Chinese money lining his pockets.


18 posted on 12/18/2013 11:29:45 AM PST by henkster (Communists never negotiate.)
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To: Stosh
I was curious about BP's ability to receive crude by water because they had spent $30 Million or so in 2012 upgrading their dock on the Indiana Harbor Ship Canal. The rate structure that railroads could be expected to quote BP would likely reflect whether or not BP had a competitive source.

As to the Chicago Tribune articles, Hoosiers are more amused than threatened by Illinois' distaste for productive business enterprises.

19 posted on 12/18/2013 11:53:43 AM PST by Mr. Lucky
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To: Mr. Lucky

I know they had to spend money to make a dock capable of receiving some very large and heavy vessels and prefabricated piping modules. Cokers are VERY heavy.


20 posted on 12/18/2013 12:05:57 PM PST by thackney (life is fragile, handle with prayer)
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To: Mr. Lucky
BP Whiting Coker vessel being moved.


21 posted on 12/18/2013 12:09:53 PM PST by thackney (life is fragile, handle with prayer)
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To: Mr. Lucky

This presentation talks about the project including building the heavy lift berths.

http://www.indianalogistics.com/summit/history/2012/presentations/Session%203%20-%20Michael%20Berna%20Indiana%20Logistics%20Summit%202012.pdf


22 posted on 12/18/2013 12:21:43 PM PST by thackney (life is fragile, handle with prayer)
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To: thackney

Well, I can see why the powers in Chicago wouldn’t want to see this sort of activity going on next door in Indiana. It’s much harder to exact graft from folks who aren’t subject to your authority.


23 posted on 12/18/2013 12:30:11 PM PST by Mr. Lucky
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To: Mr. Lucky

LOL it’s no mystery why the Indiana side of the border is filled with gas stations, tobacco outlets, and fireworks stores.


24 posted on 12/18/2013 12:36:36 PM PST by nascarnation (Wish everyone see a "Gay Kwanzaa")
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To: Mr. Lucky

It is part of the reason for the economics of massive offsite fabrication. The union labor cost greatly exceeded the cost of shipping in prefab monster modules.


25 posted on 12/18/2013 1:05:33 PM PST by thackney (life is fragile, handle with prayer)
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