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30-09-2019

Husky receives approval to begin superior refinery rebuild

The Company has received the required permit approvals to begin reconstruction activities at the site and work is expected to begin immediately. Demolition of damaged equipment resulting from a fire in April of 2018 is now largely complete and the rebuild will take place over the next two years with an expected return to full operations in 2021.

“Our continued investment in this refinery and the community will support the Superior-Duluth regional economy through jobs, procurement, taxes and essential energy products for years to come,” said CEO Rob Peabody. “The Superior Refinery is an integral part of Husky’s Integrated Corridor business, which maximizes margin capture across the value chain.”

Husky acquired the Superior Refinery, located in Superior, Wisconsin, in 2017. As the first U.S. refinery along the route of the Enbridge mainline, it is ideally positioned to process the Company’s Canadian heavy crude feedstock into high-demand products such as gasoline, diesel and asphalt for the U.S. Midwest market. The refinery has about 200 employees and works with numerous contractors and suppliers in the region. During the construction phase, more than 350 contractor jobs are expected to be created at peak.
 
Key features of the rebuild project:
 
* The modernized refinery will feature Best Available Control Technology, which incorporates advances in technology and efficiencies from across the refining industry.
* The facility will be more energy efficient, in full compliance with federal, state and local regulations.
* The refinery is expected to run in a continuous mode averaging 45,000 barrels per day (bbls/day), which includes a 5,000 bbls/day average increase in heavy oil processing to 25,000 bbls/day.
* The refinery will produce a full slate of products, including asphalt, gasoline and diesel, enhancing Husky’s ability to service the U.S. Midwest market.
* Local contractors and services will be employed in the rebuild whenever possible.
 
Once the refinery is fully ramped up, Husky’s overall downstream throughput capacity is expected to be approximately 400,000 bbls/day.
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