Husky Receives Approval to Begin Superior Refinery Rebuild
September 30 2019 - 6:00AM
Husky Energy continues to make steady progress towards a return to
full operations at the Superior Refinery.
The Company has received the required permit
approvals to begin reconstruction activities at the site and work
is expected to begin immediately. Demolition of damaged equipment
resulting from a fire in April of 2018 is now largely complete and
the rebuild will take place over the next two years with an
expected return to full operations in 2021.
“Our continued investment in this refinery and
the community will support the Superior-Duluth regional economy
through jobs, procurement, taxes and essential energy products for
years to come,” said CEO Rob Peabody. “The Superior Refinery is an
integral part of Husky’s Integrated Corridor business, which
maximizes margin capture across the value chain.”
Husky acquired the Superior Refinery, located in
Superior, Wisconsin, in 2017. As the first U.S. refinery along the
route of the Enbridge mainline, it is ideally positioned to process
the Company’s Canadian heavy crude feedstock into high-demand
products such as gasoline, diesel and asphalt for the U.S. Midwest
market. The refinery has about 200 employees and works with
numerous contractors and suppliers in the region. During the
construction phase, more than 350 contractor jobs are expected
to be created at peak.
Key features of the rebuild
project:
- The modernized refinery will feature Best Available Control
Technology, which incorporates advances in technology and
efficiencies from across the refining industry.
- The facility will be more energy efficient, in full compliance
with federal, state and local regulations.
- The refinery is expected to run in a continuous mode averaging
45,000 barrels per day (bbls/day), which includes a 5,000 bbls/day
average increase in heavy oil processing to 25,000 bbls/day.
- The refinery will produce a full slate of products, including
asphalt, gasoline and diesel, enhancing Husky’s ability to service
the U.S. Midwest market.
- Local contractors and services will be employed in the rebuild
whenever possible.
Once the refinery is fully ramped up, Husky’s
overall downstream throughput capacity is expected to be
approximately 400,000 bbls/day.
Investor and Media
Inquiries:
Leo Villegas, Senior Manager, Investor Relations403-513-7817
Mel Duvall, Senior Manager, Media & Issues403-513-7602
FORWARD-LOOKING STATEMENTS
Certain statements in this news release are
forward-looking statements and information (collectively,
“forward-looking statements”), within the meaning of the applicable
Canadian securities legislation, Section 21E of the United States
Securities Exchange Act of 1934, as amended, and Section 27A of the
United States Securities Act of 1933, as amended. The
forward-looking statements contained in this news release are
forward-looking and not historical facts.
Some of the forward-looking statements may be
identified by statements that express, or involve discussions as
to, expectations, beliefs, plans, objectives, assumptions or future
events or performance (often, but not always, through the use of
words or phrases such as “will likely result”, “are expected to”,
“will continue”, “is anticipated”, “is targeting”, “estimated”,
“intend”, “plan”, “projection”, “could”, “aim”, “vision”, “goals”,
“objective”, “target”, “schedules” and “outlook”). In particular,
forward-looking statements in this news release include, but are
not limited to, references to: the expected timing of
commencement of the rebuild, duration of the rebuild and timing of
return to full operations; and the expected benefits and key
features of the rebuild, including the expected increase in
downstream throughput capacity once the rebuilt refinery is fully
ramped up.
Although the Company believes that the
expectations reflected by the forward-looking statements presented
in this news release are reasonable, the Company’s forward-looking
statements have been based on assumptions and factors concerning
future events that may prove to be inaccurate. Those assumptions
and factors are based on information currently available to the
Company about itself and the businesses in which it operates.
Information used in developing forward-looking statements has been
acquired from various sources, including third-party consultants,
suppliers and regulators, among others.
Because actual results or outcomes could differ
materially from those expressed in any forward-looking statements,
investors should not place undue reliance on any such
forward-looking statements. By their nature, forward-looking
statements involve numerous assumptions, inherent risks and
uncertainties, both general and specific, which contribute to the
possibility that the predicted outcomes will not occur. Some of
these risks, uncertainties and other factors are similar to those
faced by other oil and gas companies and some are unique to the
Company.
The Company’s Annual Information Form for the
year ended December 31, 2018 and other documents filed with
securities regulatory authorities (accessible through the SEDAR
website www.sedar.com and the EDGAR website www.sec.gov) describe
some of the risks, material assumptions and other factors that
could influence actual results and are incorporated herein by
reference.
New factors emerge from time to time and it is
not possible for management to predict all of such factors and to
assess in advance the impact of each such factor on the Company’s
business or the extent to which any factor, or combination of
factors, may cause actual results to differ materially from those
contained in any forward-looking statement. The impact of any one
factor on a particular forward-looking statement is not
determinable with certainty as such factors are dependent upon
other factors, and the Company’s course of action would depend upon
management’s assessment of the future considering all information
available to it at the relevant time. Any forward-looking statement
speaks only as of the date on which such statement is made and,
except as required by applicable securities laws, the Company
undertakes no obligation to update any forward-looking statement to
reflect events or circumstances after the date on which such
statement is made or to reflect the occurrence of unanticipated
events.