Project Overview

BP continues progress with detailed engineering, design and early construction for our $3.8 billion investment to upgrade and modernize our Whiting Refinery in northwest Indiana. The project benefits US energy security and fuel supply reliability for the Midwest US and sustains the refinery's positive contribution to the economy of the Midwest US, including jobs for thousands of BP employees and contractors in northwest Indiana.

The project enables the facility to increase motor fuels production by about 1.7 million gallons each day, and to refine more oil from Canada, tapping into growing oil production in the Alberta province. The project also provides a significant increase to the tax base of northwest Indiana. An important aspect of the project is to design and integrate improvements that protect the environment. More than $1.4 billion of the $3.8 billion refinery modernization program is allocated for environmental improvements.

Seeking permits for the modernization is an important step to ensure the Whiting Refinery can meet the energy needs of the Midwest while being protective of the environment. BP received a renewed water permit for the Whiting refinery in summer 2007. BP subsequently committed to meet the lower limits contained in our previous wastewater-discharge permit for total suspended solids and ammonia. BP will use information from four parallel tracks of activity to help us determine the most appropriate and effective processes and technologies for the Whiting Refinery:

BP is conducting an internal review involving staff and consultants with global refinery and other industry experience to evaluate and design source control and water treatment options;
Expert analysis is being conducted by consultants who are looking at ideas presented by others to determine if they may be applicable to the Whiting refinery;
Science and engineering experts from Purdue Calumet University Water Institute and Argonne National Laboratory are studying emerging technologies and approaches to minimize discharges into Lake Michigan; and
BP is participating with the Petroleum Environmental Research Forum (PERF), an industry group that is researching and developing environmental technologies for industry.

The Indiana Department of Environmental Management (IDEM) has issued the Construction Air Permit for the Whiting Refinery modernization, an important milestone as our company's project team completes detailed engineering and planning. With the air permit issued in early May, construction crews began to pour concrete for pilings and foundations. In order to operate any facility either new or modified in Indiana, BP also needs an Operating Air Permit; we continue work with the US Environmental Protection Agency and IDEM for the issuance of this permit.

The construction and draft operating air permits are based on an application BP filed in which the company proposed lower air emissions for the refinery after completion of the modernization project in 2011. At that time, the refinery will be able to process more Canadian heavy crude oil and produce more gasoline and diesel, while still reducing our overall regulated air emissions.

The BP Whiting draft air permits underwent a comprehensive regulatory review and public comment period. IDEM made drafts of the construction and operating air permits available for public review and comment and held a public meeting and a public hearing on permits in March. In addition to the regulatory process, BP continues communications with various stakeholders to provide information on the project.

BP's project team has worked hard to achieve more fuel and lower total regulated air emissions while refining heavier, more difficult to process crude. We made significant investments in pollution control in recent years. As part of the Whiting Refinery modernization, we are replacing existing equipment with more modern technology, installing emission controls on upgraded and existing units as well as achieving emissions reductions from the removal of older, less efficient equipment.

Canadian oil is critical to America's energy security and the need for additional motor fuels. BP is committed to finding ways to achieve the important objectives of U.S. energy security, increased gasoline supply, economic development and environmental stewardship. Our goal is to protect the environment and bring more gasoline and diesel to the Midwest that's processed from a secure source of North American oil.

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