Tesoro Corporation Board of Directors Approves Two Projects at the Anacortes Refinery
February 17 2015 - 4:45PM
SAN ANTONIO - February 17, 2014 - Tesoro
Corporation (NYSE:TSO) today announced that its Board of Directors
has approved two complementary projects to enhance clean products
production at its Anacortes, Washington refinery. These projects
include a $90 million naphtha isomerization project, which is
designed to comply with upcoming reduced-sulfur gasoline
regulations while simultaneously reducing gasoline production
costs, and the previously announced $300 million mixed xylenes
project, which upgrades and diversifies the value of the facility's
product slate.
"Tesoro is pleased to announce this strategic
commitment to our Anacortes facility and to the local community.
These high-return capital projects are expected to produce cleaner
fuels at a lower cost, while diversifying Tesoro's product mix and
enhancing our gross margin," said Greg Goff, Tesoro's Chairman,
President and CEO. The isomerization project is expected to
generate competitive returns of approximately 25% and the mixed
xylenes project is expected to generate competitive returns of
approximately 20%, both based on Tesoro's market outlook. Startup
of the mixed xylene project is expected in 2017 and startup of the
isomerization project is expected in 2018, both dates subject to
permitting.
These projects are expected to improve our
capability to efficiently deliver both local transportation fuels
and global feedstocks, making Tesoro a stronger member of the
communities the Company serves, and further demonstrating Tesoro's
commitment to the state of Washington. The Company expects multiple
benefits to the state including increased tax revenue, positive
local economic impact, and high-paying temporary and permanent jobs
which, at peak construction workforce, is estimated at 500 workers,
with an ongoing permanent staff increase of approximately 20.
According to the Washington Research Council, each permanent
petroleum job adds $880,000 per year of state personal income
through additional employment and commerce.
On a global scale, the logistics-enabled Asian
trade possibilities associated with the mixed xylenes project are
quite significant, based on increased naphtha sales to Asia,
reduced freight costs on shipments of valuable products from Asia
to the US, and expansion of Tesoro trading activities in Asia. This
aspect of the project should increase the competitiveness of the
Anacortes refinery and support additional ongoing growth in
Tesoro's Washington-based business.
Tesoro Corporation, a Fortune 100
company, is an independent refiner and marketer of petroleum
products. Tesoro, through its subsidiaries, operates six refineries
in the western United States with a combined capacity of over
850,000 barrels per day and ownership in a logistics business which
includes a 36% interest in Tesoro Logistics LP (NYSE: TLLP) and
ownership of its general partner. Tesoro's retail-marketing system
includes over 2,200 retail stations under the ARCO®, Shell®,
Exxon®, Mobil®, USA Gasoline(TM) and Tesoro® brands.
This release contains certain
statements that are "forward-looking" statements within the meaning
of Section 27A of the Securities Act of 1933 and Section 21E of the
Securities Exchange Act of 1934 concerning our expectations
regarding the estimated cost and timing of the projects; and
anticipated benefits of the project for Tesoro and the surrounding
communities, including enhancement of clean products production,
reduction in fuels production costs, diversification of product
slate, expected returns on investment, efficient delivery of fuels
and blendstocks, addition of temporary and permanent jobs,
increased naphtha sales to Asia, reduced freight costs, expansion
of Tesoro's Asian trading activities, and increased competiveness
and growth of Tesoro's Anacortes refinery and related business. For
more information concerning factors that could affect these
statements see our annual report on Form 10-K and quarterly reports
on Form 10-Q, filed with the Securities and Exchange Commission. We
undertake no obligation to publicly release the result of any
revisions to any such forward-looking statements that may be made
to reflect events or circumstances that occur, or which we become
aware of, after the date hereof.
Contact:
Investors:
Brian Randecker, Senior Director, Investor Relations, (210)
626-4757
Media:
Tesoro Media Relations, media@tsocorp.com, (210) 626-7702
This
announcement is distributed by NASDAQ OMX Corporate Solutions on
behalf of NASDAQ OMX Corporate Solutions clients.
The issuer of this announcement warrants that they are solely
responsible for the content, accuracy and originality of the
information contained therein.
Source: Tesoro Corporation via Globenewswire
HUG#1895239
Andeavor (NYSE:ANDV)
Historical Stock Chart
From Mar 2024 to Apr 2024
Andeavor (NYSE:ANDV)
Historical Stock Chart
From Apr 2023 to Apr 2024