Motiva refinery expansion
Good news today admist a rising number of refinery closures that have gripped the sector- another facility is set to expand. CHS today announced their plans to boost capacity at its mid-continent refinery in McPherson, Kansas.
The long term trend in the refining sector has been to close smaller refineries or to expand existing more profitable facilities, and this expansion, no matter what reason, will help offset the recent decline in refining capacity. The refinery in question is no doubt well positioned to accept crude from the Bakken formation in North Dakota, a likely contributing factor in the decision to expand.
In a press release, CHS states that the refinery expansion will begin this spring, and once completed, bring capacity at the plant to 100,000 barrels per day from its current 85,000 barrel per day capacity. The expanded capacity is said to come online in the first months of 2016 and compliments a previous $555 million plant expansion already underway.
According to CHS, with today's expansion announcement included, $1.4 billion will have been invested by the time the production comes online several years down the road.
"Investing in additional refining capacity at McPherson is further evidence of our commitment to expanding our energy platform to add value for our owners and customers while becoming the premier marketer of refined fuels to rural America," said Jay Debertin , CHS executive vice president and chief executive officer, Energy and Foods.
Debertin said the additional refined fuels gallons produced will allow CHS to better match production from McPherson and its 55,000 barrels per day refinery at Laurel, Mont., with customer demand. "The added refinery production will be equally divided between diesel and gasoline to best meet our customers' agricultural needs in rural America," he said.