UPDATE 1-Husky Energy may revamp Ohio refinery for some Canadian heavy crude

Wed Aug 7, 2013 4:18pm EDT
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* Project would allow up to 40,000 bpd of Canadian heavy crude processing

* Project targeting 2017 completion if Husky moves forward

* Canadian heavy crude at $23 per-barrel discount to U.S. crude

By Kristen Hays

HOUSTON, Aug 7 (Reuters) - Husky Energy is considering a revamp of its Lima, Ohio, refinery to process up to 40,000 barrels per day of Canadian heavy crude, a spokesman said on Wednesday.

Canada's No. 3 integrated oil company has sanctioned preliminary engineering design for the project in the third quarter this year that, if approved, would revamp existing process units and add new equipment to handle heavy crude by 2017 at the 155,000 bpd plant.

The refinery now processes light-sweet crude, and it would maintain that capability, spokesman Mel Duvall said.

Several refiners have already conducted similar major conversion projects in recent years at U.S. refineries in the Northern Tier so the plants can process more Canadian heavy crude, which trades at a discount to the U.S. crude benchmark, West Texas Intermediate.   Continued...