BP PLANS TO INVEST $3 BILLION AT ITS NORTHWEST INDIANA WHITING FACILITY TO REFINE CANADIAN HEAVY CRUDE OIL
DATELINE: WHITING, Ind.
The Indiana Economic Development Corporation issued the following news release:
Gov. Mitch Daniels today joined BP executives to announce the company's plans to reconfigure its Whiting, Ind. refinery to handle Canadian heavy crude oil processing. The company's $3 billion investment will create up to 80 new permanent full-time jobs and 2,500 jobs during the 3-year construction phase.
"We appreciate BP's choice of Indiana for this massive, landmark project. In capital investment this is the largest we've had, and more construction workers will be hired for this project than to build the new Indiana Stadium and Convention Center," said Daniels. "The eyes of the whole state are on Northwest Indiana today, as they should be. This marks another huge step in Indiana's economic comeback."
BP America Inc. Chairman and President Bob Malone said the company intends to reconfigure its Whiting Refinery so most of its feedstock can be heavy Canadian crude oil. Reconfiguring the refinery also has the potential to increase its production of motor fuels by about 15 percent, which is about 1.7 million additional gallons of gasoline and diesel per day.
"BP is pleased to invest in a project important to the economies of both the United States and Canada," Malone said. "BP's investment increases the diversity and security of oil supplies that can be refined into gasoline, diesel and other petroleum products in demand by consumers in the Midwestern United States. It also provides a significant market for Canada's abundant heavy crude oil resources."
The Whiting refinery currently produces about 4.5 billion gallons of transportation fuel each year, enough to supply more than 5 million vehicles. "After our investment, the refinery will have the potential to supply motor fuel to about 6 million automobiles," Malone said. Construction of the project is tentatively scheduled to begin in 2007 and be completed by 2011, pending regulatory approvals.
The Indiana Economic Development Corporation (IEDC) offered incentives to assist in the company's decision to expand operations at the Whiting facility. The IEDC offered incentives including up to $450,000 in training grants and approximately $1.2 million in tax credits based on job creation and capital investment. Additionally, the Indiana Department of Transportation and Indiana Department of Workforce Development will provide assistance in the form of infrastructure improvements and worker training.
BP's Group Vice President for Refining Mike Hoffman said the Whiting Refinery is optimally located in the U.S. Midwest and has substantial capacity for reconfiguration as well as effective infrastructure to support this project.
"The planned investment will modernize the refinery with equipment of significant size and scale and competitively reposition it as a top tier refinery well into the future," Hoffman explained. "Following our most recent review of project plans, BP is proceeding with detailed engineering, permitting and procurement to progress this project to construction by the end of next year."
"We are fortunate that northwest Indiana has an experienced workforce that can support a major construction project such as the one we have planned," said Dan Sajkowski, BP Whiting Refinery Manager and Vice President of BP Products North America Inc.
State and local government support of economic development and infrastructure improvement was also important in attracting this investment to Indiana, according to Sajkowski. "We appreciate the attractive business environment provided by the state of Indiana and the cities of East Chicago, Hammond and Whiting."
BP is one of the world's largest oil and gas companies, serving about 13 million customers every day in more than 100 countries across six continents. BP's business segments are Exploration and Production; Refining and Marketing; and Gas, Power and Renewables which includes its Alternative Energy business. Through these business segments, BP provides fuel for transportation, energy for heat and light, retail services, and petrochemicals products. For more information, visit www.bp.com.
Contact: Weston Sedgwick, 317/232-8873, wsedgwick@iedc.in.gov.