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Husky Lima Refinery Celebrates 125 Years

Husky Lima Refinery Celebrates 125 Years

The 125th anniversary of the Lima refinery is a rare milestone and a testament to the hard work and commitment of generations of workers and their families,” said Husky CEO Asim Ghosh. “Few companies and few industries can claim such a proud heritage.”

Husky Energy Inc. and its employees in Lima, Ohio, recently celebrated the 125th anniversary of the Lima refinery.

“The anniversary is important to celebrate and acknowledge the long-standing, significant contribution the refinery and the energy industry have made to the Lima community during the past years,” said Graham White, a spokesman for Husky.

Currently, the Lima refinery has about 430 hourly employees and 120 contractors on site at any given time, with a throughput capacity of 160,000 barrels of crude oil per day. The Lima refinery receives nearly all of its crude oil by pipeline from the Gulf of Mexico and Texas. It produces approximately 2 billion gallons of refined petroleum products annually. In addition to producing the equivalent of about 25 percent of the gasoline used each day in Ohio, the refinery produces diesel and jet fuels, residual fuels, and petrochemical feedstocks, some of which are delivered to chemical companies located adjacent to the Lima refinery.

In honor of the historic milestone, the company unveiled a comprehensive model of the refinery, which will now be on display at the Allen County Museum.

In addition to the dedication of the model of the Lima Refinery to the museum, Husky announced two donations. A $30,000 commitment was made to the YMCA Leaders Club to enable its Youth Mentoring Center to continue its work in tutoring students in literacy and comprehension skills. The company also donated $30,000 to Ohio Northern University. The funds will be used over the next three years to assist under-served student populations from Lima Senior High School to prepare for college and be successful in their postsecondary education.

“The refinery has been an anchor and an important economic engine in the region throughout the years,” said Ghosh. “We are pleased to be investing in its future success and in being able to offer our support to three very worthwhile community initiatives.”

Through the years

The Lima refinery has gone by many names across its 125-year history, and has changed hands several times. The refinery, which began operations in 1886, went by the Solar Refinery. It was financed by John

D. Rockefeller, founder of the Standard Oil Co. In 1931, it became Sohio — a name that would remain until 1986 when Standard Oil merged with British Petroleum, which tried twice, unsuccessfully, to sell the Lima refinery in 1994 and 1996. It said it was unprofitable, and announced in 1996 it planned to close the facility. But two years later, BP reached terms with Clark Refining and Marketing and sold the refinery in 1998. Clark changed its name to Premcor Inc. in 2000.

In 2005, the refinery changed hands again as Premcor was purchased by Valero Energy Corp., which turned around and sold the Lima facility to its current Canadian owner, Husky, in 2007 for $1.9 billion.

Focus on safety, continuous improvement

The Lima refinery stands out for its safety culture. It has marked several recent milestones in safety performance, including currently working 532,000 person-hours without incurring a recordable injury. The refinery received a railcar loading safety award from CSX in 2010.

As part of its drive toward continuous improvement, the refinery has also implemented several new safety initiatives, including fall protection and scaffolding program improvements, job hazard assessment and a master work plan permit system, all of which have resulted in a safer work environment for employees and contractors.

According to the company, the health and safety of the public, its employees and contractors is at the core of Husky and essential to the refinery’s operations.

To remain competitive, the refinery makes continuous improvements to its facility. The pipeline-delivered crude oil — primarily West Texas sweet crude — undergoes a series of refining steps as it traverses the various crackers, cokers and other processing equipment on the grounds, separating into everything from gasoline and kerosene to benzene and fuel stock used in aluminum smelting. Nearly every bit of the petroleum is used in the process, and even the plant’s ubiquitous burn-off flare plays a high-tech role in keeping the whole process regulated.

The company will consider how to upgrade the plant to enhance its processing of heavy crude oil, and expects to make considerable investments in Lima. The plant received $132 million in new work last year, plus $46 million on maintenance, the company said. Major projects are planned at the facility in 2014 and 2015.

Construction has started on a new $40 million central control facility, which will improve communications and overall process safety. Additionally, the facility will house all refinery management, supervisors and staff, which will allow for better time management and enhance worker productivity.

Detailed engineering has also been completed on a $58 million kerosene hydrotreater that will increase the refinery’s jet fuel production volume and allow more flexibility in producing diesel fuel or jet fuel, depending on market need.

Husky’s strategic plan for downstream, which includes the Lima refinery and the BP-Husky refinery in Toledo, Ohio, is focused on supporting heavy oil and oil sands production and making prudent reinvestments. The company said it is continuing to evaluate projects to optimize, integrate and reconfigure the Lima refinery.

Husky Energy is one of Canada’s largest integrated energy companies. It is headquartered in Calgary, Alberta, and is publicly traded on the Toronto Stock Exchange under the symbol HSE and HSE.PR.A.

For more information, visit www.husky energy.com or call (403) 298-7088. •


BIC Magazine
Author: BIC Magazine, bicnews@bicalliance.com

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