Canada-based Husky Energy has approved a new crude oil flexibility project for its refinery situated in Lima at Ohio, US.

The company plans to upgrade the refinery with around $300m to process up to 40,000 barrels per day (bbls/day) of heavy crude feedstock from Western Canada starting in 2017.

As part of the project, Husky intends to modify the coker and processing units to maintain the refinery’s ability to refine light crude oil.

During planned turnarounds in late 2015 and late 2016, the equipment upgrades are scheduled to take place, while engineering work for the refinery is underway, according to the company.

Husky said that the project is part of company’s focused integration strategy and supports the firm’s heavy oil business in Western Canada, while planned projects are expected to increase thermal oil production to 55,000 bbls per day in 2016.

In 2013, the company has brought a new 20,000 bbls/day kerosene hydrotreater into on line at the Husky Lima refinery to increase distillate capacity.

Husky also commissioned new recycle gas compressor at the partner-operated BP-Husky Refinery in Toledo, as well as added two 300,000-barrel tanks at the Hardisty terminal to improve storage capability.