Calumet Specialty Products said last week that it has spent over $100 million on its Shreveport, La., refinery expansion through March 31, and it estimates the total cost of the project will reach $200 million, $50 million more than previous estimates.
The company continued to predict that its major capital improvement project at the Shreveport refinery will be completed in the third quarter of 2007, with production ramping up in the fourth quarter. The project should increase the refinery’s crude oil throughput capacity by about 40 percent over current levels, from about 42,000 b/d to 57,000 b/d.
We have now either acquired or contracted for the purchase of all key operating equipment for the expansion project and have spent a total of $100.5 million in capital expenditures related to the project as of March 31, 2007, Calumet said. The company noted that final costs will be about $200 million, $50 million more than previously estimated.
Calumet attributed the cost increases to escalations in construction costs and to an enhancement in the project to allow Shreveport to run some 25,000 b/d of sour crude. The company noted that it expects another planned capital project, to add capacity and modify certain operating units, to lower total per-barrel feedstock costs.
Calumet had earlier announced that its major expansion project at Shreveport, adding 15,000 b/d of crude capacity, would add 6,000 b/d of Group II base oil production plus 1,000 b/d of new wax volume. All 40 to 700 viscosity base oil volumes at Shreveport were predicted to increase an average of 50 percent. The bulk of the new base oil capacity will result from dedication of Calumets dewaxing unit to base oil production. In addition, Calumet planned to add a hydrofinisher to the unit for color improvement and product stabilization.
On completion of the Shreveport expansion, the company said it will produce nearly 30,000 b/d of specialty lubricant base stocks, waxes and solvents.
There were no reported changes in posted paraffinic base oil prices in the United States this week. Crude closed at$63.17per barrel yesterday on the New York Mercantile Exchange, according to Bloomberg. That was 91 cents above the price a week ago.
Historic U.S. posted base oil prices and WTI and Brent crude spot prices are available for purchase in Excel format.