Commonwealth Journal

November 14, 2013

Continental Refining launching residential fuel oil deliveries

Company promises competitve oil pricing

by Bill Mardis
Commonwealth Journal

Somerset —

Continental Refining Company (CRC) is announcing a regional advertising campaign starting today that informs customers the Somerset-based refinery will deliver home heating oil from local producers to local users within 100 miles. 
The half page color advertisement appears today in the Commonwealth Journal as well as in the CJ’s sister newspapers the Wayne Couty Outlook and the McCreary County Record. The advertising campaign is designed to make sure regional customers know they have access to competitive heating oil options this winter, according to Missy Shorey, spokesperson for CRC. She said CRC is the only source of heating oil that actually costs less than last year.
Availability of home heating oil from CRC is another in a rapid series of major announcements indicating the former Somerset Refinery is now up and running with gusto. 
Employment at CRC has increased by five during the past month. Shorey called “awesome” the employment total of 48.” Company official say the refinery’s operation will create another 200 ancillary jobs in the region.
Last month, CRC announced a $1.6 million to $2.2 million expansion that includes a value-added liquid petroleum gas plant and a reactor to produce ultra-low sulfur on-road diesel. It was part of a promised $60 million in upgrades during the next five years.
The new gas plant will reduce emissions and process crude-oil liquid petroleum (LPG) byproducts butane and propane. Up to 10,000 gallons of propane and butane can be converted daily.
 The project expands existing infrastructure to capture, pressurize and store high margin, crude oil byproducts propane, butane, and natural gasoline – often referred to as NGL products, or Y-Grade. These products, after further processing, are sold as fuel for residential, commercial, and industrial consumers at higher profit margins, a CRC news release said.
 As of last month, 30 percent of the infrastructure was in place at CRC to process LPG crude oil byproducts. Working in a strategic partnership with Texas-based, Viewpoint Energy, LLC, the remaining 70 percent of mechanical equipment, including additional process piping and compressors, will be provided and installed. 
  Construction will take three months after the design phase is complete. The project is expected to be finished next spring. Additional specialized work will be bid to local and regional professionals.
CRC is expected to shortly take delivery of a newly constructed reactor designed to replace an existing reactor. This will enable the refinery to make ultra-low sulfur on-road diesel (ULSD). The reactor should be in place by late November and is expected to be operating by early December.
 The former Somerset Refinery, purchased by Continental Refining in December 2011, supports local crude oil producers with a dramatic decrease in transportation costs along with favorable crude rates and rapid payment cycles, the company said. 
  Continental Refining Company is one of two crude oil refineries in Kentucky and one of only 150 refineries in the United States. It is the closest refinery for crude oil producers within a 170-miles radius.
  Refining operations began in January, processing crude oil supplied by Sunoco Partners Marketing & Terminal LP as well as regional producers. Now operating at 65 percent capacity, the plant, at full production, can refine 5,500 barrels a day.