Ergon expanding crude processing capacity at Mississippi refinery

Ergon Inc. is undertaking an expansion of processing and production capacities at subsidiary Ergon Refining Inc.’s 26,500-b/d specialty naphthenic base oil refinery in Vicksburg, Miss., the company said.

Alongside increasing the refinery’s crude distillation capacity by 20% from its existing 26,500-b/d capacity, the proposed $400-million expansion will enable an additional 6,000 b/d of gasoline production at the site to support wholesale fuels markets in western Mississippi and eastern Louisiana, Ergon and the Mississippi Development Authority (MDA) said in separate Mar. 25 releases.

Aimed at optimizing and enhancing the refinery’s operational efficiency to ensure the site’s longevity as well as a reliable local gasoline supply, the project additionally will involve installation of a “dual cogeneration power complex” (i.e., combined heat and power plant), according to MDA.

To improve supply and fuels marketing capabilities, the project also will include an expansion of pipeline infrastructure connecting the refinery directly to ERI’s Vicksburg fuels terminal adjacent to the manufacturing site, MDA said.

ERI acquired the Vicksburg fuels terminal from Citgo Petroleum Corp. in September 2023 to expand marketing of the refinery’s gasoline and diesel production, Ergon confirmed in an earlier release.

Scheduled for completion during first-quarter 2027, the refinery expansion, once online, will result in 20 new permanent jobs for the Vicksburg community, MDA said.

This latest proposed expansion follows the operator’s previous $150-million upgrading project at the Vicksburg refinery launched in late 2014 to enable production of low-aromatic products and increased crude processing flexibility (OGJ Online, Oct. 14, 2014).