Husky Energy to buy refinery in Wisconsin for $435M US

A $435-million US understanding to buy a refinery in Wisconsin will concede Husky Energy to compare estimate ability with a flourishing complicated oil outlay while postponing a designed pavement plant enlargement in Alberta.

The 50,000-barrel-per-day refinery in Superior, Wis., is being purchased from Calumet Specialty Products Partners of Indiana in a understanding approaching to tighten in a fourth quarter, a companies pronounced Monday.

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“Acquiring a Superior refinery will boost Husky’s downstream wanton estimate capacity, gripping value-added estimate in lockstep with a flourishing production,” Husky CEO Rob Peabody pronounced in a statement.

Husky’s complicated oil prolongation from Alberta and Saskatchewan is about 120,000 barrels per day, though that will boost by about 40,000 bpd as new projects come on tide over a subsequent 3 years, orator Kim Guttormson said.

The Superior refinery understanding will grow ability to labour complicated oil to about 205,000 bpd, she said. Overall downstream capacity, including light and middle class oil refining, is to arise to about 395,000 bpd, with 275,000 bpd in a United States.

Husky owns a complicated oil upgrader and pavement refinery in Lloydminster, on a Alberta-Saskatchewan border, as good as a light oil refinery in Lima, Ohio, and a 50 per cent interest with partner BP in a complicated oil refinery in Toledo, Ohio.

The Superior refinery produces about 9,000 bpd of asphalt, 17,500 bpd of gasoline and 10,900 bpd of diesel, as good as complicated fuel oils.

Husky has been considering an enlargement of a pavement refinery in Lloydminster to double prolongation to about 30,000 bpd of asphalt.

A preference on a expansion, estimated to cost $800 million to $900 million, was approaching subsequent year, though will now be behind until after 2020.

Analysts gave a merger flitting outlines Monday for a outcome on Husky’s ability to gain on flourishing pavement approach from increasing infrastructure spending opposite North America.

Guttormson pronounced pavement is ecstatic by rail and can simply be changed opposite a limit to where it is in demand.

Husky skeleton to keep a approximately 180 workers during a refinery, that has approach tube connectors to a company’s ride depot in Hardisty, Alta.

Article source: http://www.cbc.ca/news/canada/calgary/husky-energy-refinery-wisconsin-purchase-1.4246426?cmp=rss