Husky Energy may revisit postponed plan to double the capacity of its Lloydminster asphalt refinery.
According to CTV News, the company declared it will boost downstream refining, upgrading and transportation output if they win a bid to take over the McCaffrey Energy Group. The $3.3 billion offer could kickstart production of 60,000 barrels a day at the Lloydminster refinery. The projects will join other initiatives Husky is working on, including the Superior Wisconsin refinery reopening in 2020 and upgrades to an Ohio refinery which total 45,000 bpd.
In a conference call last Thursday, CEO Ron Peabody says that they’re “short on the upstream but will come up long after the acquisition of MEG.” If that project doesn’t go through, however, Husky could look at other options such as adding an asphalt unit to the upgrader in Lloydminster if pipeline security is more guaranteed.
MEG is refusing the multi-billion dollar offer at this time, but Peabody says he is optimistic it will be accepted by the January deadline.