DIAMOND SHAMROCK UNVEILS COKER CONSTRUCTION PLANS
DIAMOND SHAMROCK UNVEILS COKER CONSTRUCTION PLANS SAN ANTONIO, Texas, Feb. 19 /PRNewswire/ -- Diamond Shamrock
(NYSE: DRM) today announced plans to construct a coker unit at its McKee Refinery in the Texas Panhandle, increasing the McKee facility's capability to convert low value bottom of the barrel products into higher valued fuels.
The 15,000 barrel per day delayed coker unit is designed to upgrade asphalt and residual fuel oil to feedstocks for other refinery units including the hydrocracker and the diesel desulfurizer, which will be completed in mid-1993. These units will then convert the material into diesel, gasolines, and natural gas liquids. Diamond Shamrock Chairman and CEO Roger Hemminghaus explained that during the refining process a certain amount of heavy residual fuel and asphalt are produced. In the past five years, the McKee refinery has significantly increased its production of these bottom of the barrel products as a result of increasing crude throughput more than 20 percent and running heavier crudes. "There is no longer an attractive market for all of the asphalt we produce," Hemminghaus said, "and so with the addition of the coker, we will be able to upgrade these products, significantly improving the value of refinery's product mix." He added that the coker is also a major step toward increasing the refinery's capability to process less costly sour and heavier crude oils.
Currently the 115,000 barrel per day refinery processes relatively sweet crude oil.
Construction on the unit is expected to begin in early 1993 after permitting is completed. Completion is expected in first quarter of 1994. The cost of the project was not disclosed. Diamond Shamrock, Inc., with annual sales of $2.6 billion, is a regional refiner and marketer of petroleum products. The San Antonio- based corporation has two Texas refineries, markets gasoline through approximately 2,000 Diamond Shamrock branded outlets, manufactures and markets petrochemicals, processes natural gas, and stores and markets natural gas liquids. -0- 2/19/92 /CONTACT: Kathy Hughes, public relations, 512-641-8846, or Bill Strain, investor relations, 512-641-8708, both of Diamond Shamrock/ (DRM) CO: Diamond Shamrock Inc. ST: Texas IN: OIL SU:
KD -- NY018 -- 0366 02/19/92 10:54 EST
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|Date:||Feb 19, 1992|
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