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REFINING THE FUTURE

In Utah's 2012 Legislative Session...

Utah lawmakers passed a resolution encouraging the development of new technologies aimed at solutions designed to boost the production and value of waxy and heavy viscous crudes commonly found in the Uintah Basin region. The resolution carried with strong support reaffirming state government support of new technologies that can increase crude production and refining in the state. In direct answer to this challenge, FUELogistics announced following a unanimous approval and support of the Duchesne county commissioners in a public hearing on May 7, 2014, the official ground breaking of a $50 million, 36,000 bpd heavy wax crude upgrade facility to be built in Duchesne. The facility will employ an estimated 100 operational and administrative personnel at its completion, with projected annual revenues of $130 million, as well as attract and foster indirect business revenue through its contractors and participating suppliers and partners thorughout the region.

  • PHASE 1

    Phase 1 of this three phase master project calls for the initial installation of a 2000 bpd LP-FCC upgrade commercial demonstration unit that is scheduled to be completed by end of 2017.
    OIL SUPPLY CONTRACTSFUELogistics has signed a tentative crude oil supply contract with Integrated Energy Companies, LLC., of Duchesne, Utah. The initial agreement is for phase one of the facilities 2,000 bpd of waxy crude oil upgrading capacity. The agreement also includes a 'first right' to supply additional crude oil as more capacity comes online.

  • PHASE 2

    Phase 2 of the three phase master construction plan calls for the addition of a 20,000 bpd LP-FCC unit to be installed and made operational by 3rd quarter 2018.
    Manufacturing commitments have been made with Mark Steel of Salt Lake City to complete the equipment that will add this additional capacity. The LP-FCC’s to be added to FUELogistics production capacity are identical to the initial LP-FCC unit that is currently in the process of being installed at FUELogistics' Duchesne facility.

Utah's Black and Yellow Wax Challenges

Utah’s Uintah Basin’s black and yellow wax crude carries a much higher paraffinic content than most ordinary types of crude oil. These heavy viscous crudes have a high temperature pour point, making it expensive to transport because it must be heated to maintain its high temperature pour point, and for most refineries, it is much more difficult to refine. FUELogistics’ LP-FCC upgrade facility will be able to solve these challenges by economically upgrading these heavy and viscous wax crudes locally making it easily tansportable via truck, rail, or pipline without having to heat it.
The estimated $50 million, 36,000 bpd upgrade facility is part of an escalating construction plan that will strategically add processing capacity until its scheduled completion at the end of 2015. The projected timeline and layout is such that the LP-FCC’s modular and scalability will allow FUELogistics the flexibility to bring on additional processing capability as the market demands while also being able to run upgrading operations simultaneously during the add-on construction phases. FUELogistics' black and yellow wax upgrade facility will usher in the newest generation of process technology that will assist oil producers of all sizes in removing their production caps, and help to unleash the full potential of the Basin's oil production. It will also open new markets for producers to sell their premium upgraded crude, while also giving downstream refineries the flexibility and option to reallocate current FCC capacity that can be better utilized on producing more useful and profitable end products such as diesel, gas, etc. As a possible side benefit, the FUELogistics upgrade facility also has the potential to alleviate a notable amount of greenhouse emissions that contributes to the poor air quality along the Wasatch Front. By offloading and displacing some of the more difficult and concentrated stages of cracking to FUELogistics' crude upgrade facility, it could result in a substantial reduction in greenhouse emissions, especially during the winter months when the serious inversions create havoc on air quality along the Wasatch Front.

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