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Trecora receives permit for new process unit

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Hydrocarbon Engineering,

Trecora Resources has received permission from the Texas Commission on Environmental Quality to construct and operate a 4000 bpd reformer unit at its South Hampton Resources (SHR) subsidiary in Silsbee, Texas.

The new reformer unit further supports the recently completed D-Train expansion, and utilises Chevron Phillips Chemical Company's proprietary Aromax® Process that was originally tested and proven for commercial application at SHR's Silsbee facility. The Aromax® Process is ideally suited to the C6+ streams available to SHR through its integrated, natural gasoline-based high purity pentane and hexane production trains.

Simon Upfill-Brown, Trecora's President and Chief Executive Officer, commented, "The Aromax® Process unit will produce a significantly higher value byproduct stream compared with our existing reformer. In addition, the new reformer will provide a secure and reliable source of hydrogen for SHR's high purity pentane production and custom processing activities. With these benefits, we remain positioned to meet increased long term pentane demand while also achieving a near term payback on the project. In recent quarters we have sold our byproduct volume at average prices below our feedstock cost, which significantly impacted our gross margins. We expect the Aromax® Process benzene, toluene and xylene (BTX) byproduct stream to be sold well above feedstock costs."

The capital investment for this project is estimated at US$45 - 50 million and will be financed by existing sources of funds. The site of the reformer unit has been cleared and construction will begin immediately. The company expects to complete the project in the second quarter of 2017.

Adapted from press release by Rosalie Starling

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