S. Dakota OKs permit for new refinery construction

HOUSTON Fri Aug 21, 2009 5:06am IST

HOUSTON Aug 20 (Reuters) - The South Dakota Board of Minerals and Environment on Thursday granted Dallas-based Hyperion LLC a permit to build a 400,000-barrel-per-day (bpd) refinery, which would be the first new refinery built in the United States since 1976, the company said in a statement.

Opponents to the plant have up to 30 days to decide on an appeal through state courts in South Dakota, according to a report on the Rapid City Journal website.

Hyperion plans an ambitious $10-billion project that includes the refinery and a natural-gas fired power plant to be located in southeast South Dakota, near the state's borders with Nebraska and Iowa.

Analysts have said the chances for the refinery's construction are slim as U.S. demand for motor fuels is expected to never again reach 2007 levels because of pending pollution reduction legislation. As much as 2 million barrels of refining capacity may not be needed in the next decade.

Hyperion plans to break ground on the project in 2011 with completion scheduled for 2015, the company said. The refinery will be configured to refine Canadian crude oil into ultra-clean gasoline and diesel.

According to the permit application, the refinery will use hydrocrackers to make fuels from crude oil. Hydrocrackers can be configured to make more diesel than fluidic catalytic cracking units, which primarily make gasoline.

Diesel fuel markets, especially in Asia, are seen by U.S. refiners as where they will find growing demand for the products after the global economic downturn ends. (Reporting by Erwin Seba; Editing by Christian Wiessner)

Comments (0)
This discussion is now closed. We welcome comments on our articles for a limited period after their publication.

  • Most Popular
  • Most Shared

Election 2014

REUTERS SHOWCASE

TCS Results

TCS Results

TCS net profit rises 51.5 percent, sees stronger sales growth.  Full Article | Quote 

Election 2014

Election 2014

Promises and more promises: India’s parties pitch their visions.  Full Article | Full Coverage 

India Markets

India Markets

Sensex slumps 207 points, at 2-1/2 week closing low.  Full Article 

Telecom Sector

Telecom Sector

RComm to raise mobile call tariff by up to 20 percent  Full Article 

Chinese Economy

Chinese Economy

China economic growth slows to 18-month low in first quarter  Full Article 

New Direction

New Direction

CEO Nadella pushes data culture at Microsoft.  Full Article 

Bitcoin ATM

Bitcoin ATM

China gets first bitcoin ATM, skirting bank crackdown.  Full Article 

Strong Sales Volume

Strong Sales Volume

Small is beautiful for Coca-Cola as volumes soar in China  Full Article 

Breakingviews

Breakingviews

Diageo throws money at Indian empire-building  Full Article 

Reuters India Mobile

Reuters India Mobile

Get the latest news on the go. Visit Reuters India on your mobile device.  Full Coverage