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Sinclair revamps Evansville refinery

October 26, 2016:

With a turn of a valve, the Sinclair Refinery in Evansville began its next 100 years of operation as a major overhaul of the facility draws to completion.  Sinclair CEO Ross Matthews and refinery manager Jim Ruble spun the handle to close down the last of three crude oil distillation units, one of which had been in operation since 1928. All production has now been switched to a new state-of-the-art plant that began operating on Oct. 18.  “In my mind this is the most advanced crude unit in the world,” Matthews said as he stood before a block-long complex of silver pipes and shining equipment.  Matthews said the new unit will permit more efficient and precise crude oil distillation and cut refinery emissions of So2 and NOx by some 1,000 tons a year.

The upgrades will also help maintain a safety record that is nearing a million worker-hours without a lost time injury, according to the company.  In the modernization effort, Sinclair revamped the refinery’s electrical system and expanded its tank storage. The larger new tanks will improve the “rack” loading time for fuel haulers. About half of the refinery’s production is transported by truck, with the rest carried via pipeline.  In the coming year, the company will also replace the existing oil-fired boilers with natural-gas-fired equipment. The refinery produces about half the gas it needs for its operations, and the changeover is seen as a cost-saving measure. 

The refinery has long been a stable point in the Casper area’s economy, and the project provided a boost in the downturn in the mineral industry. At peak construction this past spring, some 2,000 extra workers were on site for the project, according to the company.  There are still about 200 people working on the job, which will be finished by the end of 2017. Normal staffing levels are around 145.  The exact cost of the undertaking was not disclosed, but it was substantial.  “What I can say is that the amount of the investment we’re putting into the refinery — last year and this year — exceeds what the current value was,” Ruble has said.  The refinery has a capacity of 25,000 barrels a day and produces 500,000 gallons of gasoline, 400,000 gallons of diesel fuel and 100,000 gallons of other products such as liquefied petroleum gas and fuel oil, according to Ruble.  The renovations did not increase the capacity of the refinery, and Matthews said Sinclair does not have plans to expand. But that doesn’t mean the company isn’t committed.  “I think by the huge investment that we’ve made here we’ve sent notice to the community, and our competitors, that we are here to stay,” Matthews said. 

By Star Tribune