HollyFrontier 2015 Annual Report Download - page 20

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Table of Content
12
El Paso Market
The El Paso market for refined products is currently supplied by a number of area and Gulf Coast refiners and pipelines. Area
refiners include Navajo, WRB Refining, LLC (“WRB”) (a joint venture between Phillips 66 and Cenovus Energy), Valero, Alon
USA, Inc. (“Alon”) and Western Refining. Pipelines serving this market are owned by Magellan, NuStar Energy L.P. and HEP.
Refined products from the Gulf Coast are transported via Magellan pipelines.
Arizona Market
The Arizona market for refined products is currently supplied by a number of refiners via pipelines and trucks. Refiners include
companies located in west Texas, eastern New Mexico, northern New Mexico, the Gulf Coast and the West Coast. Magellan's
pipeline systems deliver refined products from the Texas Gulf Coast to El Paso and, through interconnections with third-party
common carrier pipelines, into the Arizona market.
New Mexico Markets
The Artesia, Albuquerque, Moriarty and Bloomfield markets are supplied by a number of refiners via pipelines and trucks. Refiners
include Navajo, Valero, Western Refining, Alon and WRB.
We use a common carrier pipeline out of El Paso to serve the Albuquerque market. In addition, HEP leases from Mid-America
Pipeline Company, L.L.C., a pipeline between White Lakes, New Mexico and the Albuquerque vicinity and Bloomfield, New
Mexico. The lease agreement currently runs through 2017, and HEP has options to renew for two additional ten-year periods. HEP
owns and operates a 12-inch pipeline from the Navajo Refinery to the leased pipeline as well as terminalling facilities in Moriarty,
which is 40 miles east of Albuquerque. This facility permits us to ship light products to the Albuquerque and Santa Fe, New Mexico
areas. In addition, we serve southern Colorado and northern Arizona primarily out of a terminal in Bloomfield, New Mexico,
which is owned by Western Refining.
Principal Products
Set forth below is information regarding the principal products produced at our Navajo Refinery:
Years Ended December 31,
2015 2014 2013
Southwest Region (Navajo Refinery)
Sales of produced refined products:
Gasolines 55% 54% 51%
Diesel fuels 39% 38% 39%
Fuel oil 2% 4% 6%
Asphalt 1% 1% 1%
LPG and other 3% 3% 3%
Total 100% 100% 100%
Crude Oil and Feedstock Supplies
The Navajo Refinery is situated near the Permian Basin, an area that has historically, and continues to have, abundant supplies of
crude oil available both for regional users and for export to other areas. We purchase crude oil from independent producers in
southeastern New Mexico and west Texas as well as from major oil companies. The crude oil is gathered through HEP's pipelines
and through third-party tank trucks and crude oil pipeline systems for delivery to the Navajo Refinery.
We also purchase volumes of isobutane, natural gasoline and other feedstocks to supply the Navajo Refinery from sources in Texas
and the Mid-Continent area that are delivered to our region on a common carrier pipeline owned by Enterprise Products, L.P.
Ultimately all volumes of these products are shipped to the Artesia refining facilities on HEP's intermediate pipelines running
from Lovington to Artesia. From time to time, we purchase gas oil, naphtha and light cycle oil from other refiners for use as
feedstock.
Rocky Mountain Region (Cheyenne and Woods Cross Refineries)
Facilities
The Cheyenne and the Woods Cross Refineries have crude oil processing capacities of 52,000 and 31,000 barrels per stream day,
respectively. The Cheyenne Refinery processes heavy Canadian crudes as well as local sweet crudes such as that produced from
the Bakken shale and similar resources. The Woods Cross Refinery processes regional sweet and black wax crude as well as
Canadian sour crude oils into high-value light products. For 2015, gasoline and diesel fuel (excluding volumes purchased for
resale) represented 57% and 36%, respectively, of our Rocky Mountain sales volumes.