Calumet finishes Montana refinery expansion

Calumet Specialty Products Partners, of Indianapolis, Indiana, has completed a $400 million project to more than double crude processing capacity at subsidiary Calumet Montana Refining’s Great Falls, Montana, refinery.

The facility’s 25,000-barrel-per-day (BPD) crude unit is now online and slated to reach full operating capacity by the end of March, Calumet CEO Tim Go told investors in the company’s most recent earnings report, Kallanish Energy reports.

Initially intended to lift crude processing at the refinery to 20,000 BPD from its original 10,000 BPD capacity, the project also was slated to include installation of a 25,000 BPD mild hydrocracker (MHC) to convert gas oil to higher-value distallates, a hydrogen plant to support the MHC, and a treatment unit to handle increased fuel gas production from the MHC.

The crude unit is designed to process heavy sour crudes, allowing Calumet to process less expensive Canadian crudes.

While Calumet historically has processed 20,000-25,000 BPD of heavy Canadian crudenat its refineries, roughly 25% of its overall crude refining capacity, the company plans to boost processing rates of Canadian feedstock to 40,000-45,000 BPD by year-end, and longer term to as much as 70,000 BPD, Go said.

At subsidiary Calumet Lubricants’ 17,500 BPD San Antonio, Texas, refinery, Calumet also reported the completion of a $65 million project designed to convert a portion of the refinery’s ultra low-sulfur diesel and jet fuel production into about 3,000 BPD of higher-margin solvents.