Delek US Announces $150 Million In Refinery Investments

Delek US Announces $150 Million In Refinery Investments

Louisiana Governor John Bel Edwards and Delek US President and CEO Uzi Yemin announced the energy company will invest $150 million to enhance its refinery in Krotz Springs, Louisiana, via a series of projects over the next five years. Delek US will create 30 new direct jobs with an average annual salary of $90,000, plus benefits. In addition, Louisiana Economic Development estimates the investment will result in 48 new indirect jobs, for a total of 78 new jobs for St. Landry Parish and the Acadiana Region. The company also will retain 200 existing jobs at its Krotz Springs refinery.

During his economic development mission to Israel in October 2018, Governor Edwards with with Yemin, a native of Israel. Energy was one of the industries targeted by the Governor for the trade mission, and he and Yemin discussed how the company’s operations in Louisiana might be supported for future growth. Those discussions helped facilitate Delek’s latest Louisiana project.

“Four months ago, we welcomed an Israel-based software technology company to Baton Rouge, where it has set up a cyber security partnership with LSU,” Governor Edwards said. “Last week, we announced Cybint Solutions, which has roots in the Israel Defense Forces, is creating a cyber center with Bossier Parish Community College. Today, I am happy to announce a third initiative resulting from our recent trade commission to Israel. This initiative at the Delek US refinery in Krotz Springs builds on Louisiana’s role as an energy leader in the U.S. These projects will create new high paying jobs for our Acadiana Region, and we look forward to Delek’s continued growth and success in St. Landry Parish.

The Krotz Springs refinery manufactures gasoline, diesel fuel, petrochemicals, and other products, with a capacity of 74,000 barrels per day. Built in 1980, it is one of the country’s newer refineries.

“That Delek is announcing major new investments in facilities and jobs in Krotz Springs less than a month after the completion of the company’s largest ever capital project is a testament to our faith in the refinery and the team that runs it,” Yemin said. “And I’m pleased that our enhanced partnership with the State of Louisiana, St. Landry Parish, and the Port of Krotz Springs will protect the environment and further strengthen the refiner’s viability.”

Delek US considered other sites in Texas and Arkansas before choosing its Louisiana refinery for the new investment. To secure the project, LED offered Delek US a competitive incentive package that includes a performance-based grant of up to $7.5 million, payable over four years, for enhancing the dock terminal that serves the company at the Port of Krotz Springs on the Atchafalaya River. The company also is expected to utilize the state’s Quality Jobs and Industrial Tax Exemption Programs.

“As parish president, I am very proud to be part of the efforts of so many good people coming together toward a common goal,” St. Landry Parish President W.K. “Bill” Fontenot said. “We are very fortunate to have great employers like Delek showing their growing confidence in our area. The economic impact of these investments will create a tremendous boost to Krotz Springs, our parish and our region’s economy. I want to express my deepest gratitude to all that have worked so hard to make this project possible.”

“These investments in the Krotz Springs location, on the heels of their new $138 million alkylation facility, further reinforces the Delek commitment to the long term productivity of this facility and to being an anchor employer for our area economy,” said Executive Director Bill Rodier of St. Landry Economic Development. “At the local and parish levels, we are fortunate to have such a dedicated group of more than 30 area elected leaders that worked diligently to solidify the incentives necessary to make Krotz Springs competitive for this project. It takes a true team effort to bring large projects like this together and we are grateful to all our state, regional, and local partners for their great work in helping to make this growth a reality.”

Located on the west bank of the Atchafalaya River, the facility generates substantial activity for the Port of Krotz Springs. The company’s enhancement projects at the refinery will include infrastructure improvements, facility construction and renovations, and new machinery and equipment.

“We are pleased that the Louisiana Economic Development and Governor John Bel Edwards are committed to working with the Port of Krotz Springs in growing the industries that assure new jobs and secure the employees now working at those facilities,” Port Executive Director Lynn Lejeune said. “It is known that jobs bring a new and revitalized quality of life for the areas within a 50 mile radius and beyond. This initiative and investments from Delek US, the State of Louisiana, the Port of Krotz Springs, St. Landry Parish, and Krotz Springs will anchor this corporation to continued growth that will benefit all concerned. This new venture will support better housing and new direct jobs and indirect jobs. It is an opportunity for the Port of Krotz Springs to market and attract other organizations to support the industries at the port currently, and also to help build a more financially strong parish.”

“We are thrilled to see Delek continue to thrive in Acadiana with the announcement of this substantial initiative.” One Acadiana President and CEO Troy Wayman said. “Delek’s decision to further invest in St. Landry Parish speaks to the strength of this industry sector and its importance to a vibrant regional economy.”

About Delek US

Delek US Holdings Inc. is a diversified downstream energy company with assets in petroleum refining, logistics, renewable fuels and convenience store retailing. The refining assets consist of refineries operated in Tyler and Big Spring, Texas; El Dorado, Arkansas; and Krotz Springs, Louisiana, with a combined nameplate crude oil throughput capacity of 302,000 barrels per day. The logistics operation primarily consist of Delek Logistics Partners LP. Delek US Holdings Inc. and its affiliates own approximately 63 percent (including 2 percent general partner interest) of Delek Logistics Partners LP. Delek Logistics LP (NYSE: DKL) is a growth oriented master limited partnership focused on owning and operating midstream energy infrastructure assets. The convenience store retail business operates approximately 300 convenience stores that market motor fuels in central and west Texas and New Mexico. For more information visit DelekUS.com

 

 

 

 

 

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