French oil major Total has begun construction of two new units at its Lindsey oil refinery, near Immingham, in the UK. The E300 million project is scheduled to be commissioned in 2009.

The new units are a hydrodesulphurization (HDS) unit with a capacity of one million metric tonnes per year and a hydrogen production unit, which is a steam methane reformer (SMR), necessary for the desulphurization process. At peak, the project will employ 600 people at the refinery.

The units will increase Total’s production of ultra low sulfur diesel, for which demand is growing steadily, and will substantially increase the refinery’s capacity to process less expensive sour crudes.

Total said that, following on from the commissioning of the distillate hydrocracker at the Le Havre refinery in France in 2006, this latest project further confirms the company’s assertive strategy of upgrading its refining base.

With a capacity of 10 million metric tonnes, the Lindsey site is Total’s main refinery in the UK, where the group is also a leading oil and gas producer. With a network of 900 service stations, its Total UK subsidiary is also a front-ranking petroleum product marketer.