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ULTRAMAR BEGINS CONSTRUCTION OF GASOIL HYDROTREATER; PLANS YEAR-END TURNAROUND AT WILMINGTON, CALIF. REFINERY

 GREENWICH, Conn., Nov. 15 /PRNewswire/ -- Ultramar Corporation (NYSE: ULR) reported today that it will proceed with its previously announced plans to add a high-pressure gasoil hydrotreater to its 90,000 barrel per day Wilmington, Calif. refinery.
 Commenting on the high-pressure gasoil hydrotreater, Jack Drosdick, president & COO of Ultramar Corporation, said, "This hydrotreater will enable us to significantly lower our crude and feedstocks costs, will increase our production of clean fuels and will upgrade unfinished streams into higher-value finished products starting in the third quarter of 1996. From a competitive standpoint, it is important to note that we are taking a significant profit improvement step that is already built into our competitor's refinery processes. With this unit, Wilmington improves it's competitive standing."
 The company said it will spend a total of about $170 million over the next three years to build the hydrotreater. This cost includes tie- in to a steam reforming plant which will supply hydrogen to the refinery. Ultramar is currently working with potential hydrogen suppliers to establish a long-term committed supply of hydrogen to be used by the gasoil hydrotreater and in the company's reformulated gasoline program.
 The company also said it has decided to move up a planned major turnaround of the fluid catalytic cracking and alkylation units at the Wilmington refinery. The turnaround is now planned to start in late November. It had been scheduled to start in early January. The turnaround is expected to last 40 days.
 Commenting on the turnaround plans, Jack Drosdick, said, "Refining margins in California are typically low in the late fourth quarter and currently they are at their low for the year. By taking the turnaround now the impact of the lost production on pre-tax income is expected, based on today's margins, to be between $2 and $2.5 million."
 "In October, we completed a major turnaround of our 140,000 barrel per day Quebec refinery. Following the turnaround of the Wilmington refinery we will have completed, in 1993, the major maintenance turnarounds at our two major refineries which are scheduled every four years. There are no major planned turnarounds at the Quebec and Wilmington refineries in 1994."
 Ultramar Corporation is a petroleum refining and marketing company which operates in California and in Eastern Canada through two subsidiaries. In 1992, the company sold over 250,000 barrels per day of refined petroleum products and had total revenues of $2.6 billion.
 Ultramar Corporation was formed in April 1992, to acquire Ultramar Inc. and Ultramar Canada Inc. from Ultramar PLC, a British company, and its former subsidiaries. Ultramar Corporation acquired these businesses with monies raised from an initial public offering of its common stock and the issuance of long-term senior notes. The common stock of Ultramar Corporation (ticker symbol: ULR) began trading on the New York, Toronto and Montreal stock exchanges on June 26, 1992. The company employs approximately 3,300 people.
 -0- 11/15/93
 /CONTACT: Steve Blank of Ultramar Corporation, 203-662-7019/
 (ULR)


CO: Ultramar Corporation ST: Connecticut IN: OIL SU:

TM -- NY140 -- 4699 11/15/93 17:11 EST
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Publication:PR Newswire
Date:Nov 15, 1993
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