Oil Refining Excellence
With the strategic purchase of Somerset Oil Refinery in December 2011 Continental Refining Company entered a new era with proven management investing in plant improvements that will drive efficiencies, increase capacity and meet future regulatory requirements while delivering solid consistent year-over-year profits.
- The purchase includes the acquisition of U.S. Refinery #5113 located on 93 acres in Somerset, KY along with 15 modern fuel tanker trailers for regional transportation
- The refining facility will be operational early winter 2012, increasing productivity from the current "warm idle" status to 61% of capacity by the end of winter 2013 and 100% by mid 2013
- The sale of Somerset Oil Refinery to Continental Refining Company took place in December 2011. The terms of the purchase are private.
- CRC will also fund $10 million of working capital for the refinery turnaround period and the first three years of improvements
- CRC has secured a $7.5million line of credit for funding operations
- The replacement cost of the facility is $60 million. It is one of only 150 refineries in the U.S.
- On the sales side, demand is strong given that Kentucky and Tennessee consume 186 million barrels annually of gasoline, diesel fuel, low sulfur heating oil, and residual fuels (Source: U.S. Energy Information Administration, EIA)
- According to the U.S. Energy Information Administration data (EIA), in addition to the 7,200 barrels per day (bpd) of crude oil produced within a 100-mile radius of Continental Refining Company, the company will have access to 45,000 bpd in neighboring oil producing states
- In preparation for 2015 regulatory changes with ship bunker fuel, CRC will install a hydrotreater reducing sulfur content of its diesel products by 2014