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Friday, April 17, 2015

Richard Zeits On Topping Units -- April 17, 2015

Great article over at Seeking Alpha on topping units. Zeits writes:
Topping units have been a solution broadly used in emerging markets with limited refining capacity but existing local demand for diesel, fuel oil, jet fuel (kerosene), atmospheric gas oil, LPG and asphalt. In the context of the U.S. market where refining capacity is generally highly complex, topping units may be organically integrated into the overall system, with the less valuable by-products absorbed by refiners for deeper processing, without economic loss. It is no surprise that the largest U.S. refiners are taking steps to develop such topping capacity.
Valero Energy is currently constructing two large topping units - one at its 165,000-b/d Houston refinery (current crude processing capacity is 90,000 b/d) and one at its 325,000-b/d Corpus Christi refinery (current crude processing capacity is 205,000 b/d). The two new units will have a combined capacity to process 160,000 barrels per day of light and super-light crude produced in the Eagle Ford, with both units expected to be operational within approximately one year. Valero's total investment in the two projects is expected to be $750 million.
For updates on the diesel topping unit in Dickinson, see also:
By the way, when you go through the "refinery" tag, there is talk of other topping plants or refineries of some sort northwest of Williston; near Stanley; in Minot; and even near Devils Lake.

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