- The investment includes a new 71,000-barrel-a-day hydrocracker to produce 2 million tonnes of middle distillates annually.
- The refinery will increase diesel and jet kerosene production by 3.2 million tons per year.
- Total capital expenditures until 2010 will amount to €1,650m, with €1,144m for expanding middle distillate capacity.
- The project required over 200 contractors, with 50% being Andalusian companies or those with a strong regional presence.
Investment Overview
CEPSA is investing €1.14 billion in upgrading its La Rábida refinery near Huelva, Spain. This investment aims to increase the production of middle distillates, particularly diesel and jet kerosene, to meet rising demand and reduce dependence on imports.
Key Projects
The investment includes the installation of a new 71,000-barrel-a-day hydrocracker, which will produce 2 million tonnes of middle distillates annually. Additionally, a Light Naphtha Aromax Reformer will produce 220,000 tonnes per annum of benzene and 75 tonnes per day of hydrogen, raising total benzene production to 361,000 tonnes per annum and hydrogen production to 165 tonnes per day.
Economic Impact
CEPSA's projects are expected to generate significant economic benefits for the region. The company has invested approximately €1,400 million in Andalusia to construct and extend units that will increase middle distillate production and improve energy efficiency. The refinery's expansion will create employment for 150 people and involve over 200 contractors, with 50% being Andalusian companies or those with a strong regional presence.
Production Capacity
The Huelva refinery processes around 100,000 barrels a day and aims to nearly double its refining capacity by 2010. The expansion will increase middle distillate production by 39%, reducing the need for imports. The refinery produces various oil-derived products, including Cumene, Phenol Acetone, Alpha-methylstyrene (AMS), methylamines, and derivatives used in multiple industries.
Timeline and Employment
The project, which spanned three years, employed 140 professionals and an average of 1,427 additional casual workers daily, peaking at 3,000 workers during peak periods like August 2009. CEPSA's presence in Huelva represents 2.7% of local employment and 10.2% of industrial employment, significantly contributing to the regional economy.
