Holly sees Tulsa crude unit back up next week

By OGJ editors
-- Holly Corp., Dallas, expects to return the west crude unit at its Tulsa refinery to service early next week.

Holly brought down the unit due to a mechanical problem it discovered on Apr. 22 (OGJ Online, Apr. 26, 2011). The company said the unscheduled downtime should have a limited effect on the quarter that ends June 30 “due to our ability to augment production by reducing intermediate feedstock inventories during the downtime and by running at slightly higher crude rates for the remainder of the quarter.”

Holly had said it expected the shutdown to have reduced overall plant runs 50% from throughput of 110,000-120,000 b/d at the time of the incident.

“We have completed the diesel desulfurization project at our Tulsa refinery, and progress continues on our integration efforts in Tulsa with the pipeline integration expected to be mechanically complete later this summer. We expect these projects to lower operating expenses and improve the profit producing potential of what has been a strong profit contributor since last spring.”

Holly, which operates US refineries in New Mexico, Utah, and Oklahoma, reported that the period ended Mar. 31 was one of the company’s most profitable quarters ever.

It said the Tulsa refinery, aided by strong transportation fuel cracks and attractive lube margins, was its “strongest contributor with over $78 million in [earnings before interest, taxes, depreciation, and amortization] during the quarter.”

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