The company intends to expand the refinery to process black wax from the Uinta basin, reports ogj.com.
As part of the expansion, the company will add crude processing unit, fluid catalytic cracking unit, polygasoline unit, hydro-isomerisation unit for lube oils, crude unloading bays, storage tanks, and additional wastewater treatment at the refinery, according to UDAQ’s web site.
The proposed expansion of phase 1 will increase the processing capacity of the refinery to 45,000 b/d, and will be supported by a 10-year deal with Newfield Exploration for the supply of 20,000 b/d of black and yellow wax crude oil from the Uinta basin.
Phase 1 is expected to be operational in early 2015, while the company plans to complete second phase expansion by 2016, which will lift refinery’s processing capacity to 60,000 b/d.
The estimated cost for the expansion of both phases will be between $625m to $725m.
