June 16, 2014

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Article

FUELogistics Breaks Ground on Crude Oil Upgrade Facility in Uintah Basin

Press Release

June 16, 2014

Duchesne – FUELogistics has begun construction on a crude oil upgrade facility in Duchesne that will house its new patented low profile, fluid catalytic cracker (LP-FCC) technology specifically designed to upgrade the waxy crudes coming out of Utah’s oil country.

At its completion in 2015, the FUELogistics facility will employ approximately 100 operational and administrative support personnel with projected annual revenues of $130 million.

FUELogistics’ patented LP-FCC technology represents the newest generation of technology specifically designed to tackle the difficult task of upgrading the heaviest and most viscous crudes such as the black and yellow wax commonly found in Utah’s Uintah Basin region. According to FUELogistics CEO Glenn Guglietta, the company’s LP-FCC technology will provide oil producers the relief they seek by substantially decreasing the waxy crudes pour point, thereby making it much easier and more economical to transport the upgraded crude via pipeline, rail or truck without the expense and complexities of heating it.

“The FUELogistics upgrade facility will also give oil producers the flexibility and freedom to remove current production caps while exploiting new markets for their premium grade crude,” said Guglietta. “It will deliver to downstream refineries a feed that is easier to refine into more valuable motor fuels, while maximizing product yield and reducing the feedstock that is converted to less useful products such as coke, heavy cycle oil and light fuel gases.”

The ground breaking of the new facility in Duchesne represents the first phase of a three-phase master plan that was unanimously approved by Duchesne’s county commissioners in a public hearing held May 7.

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