Husky Lima Refinery Said to Halt Diesel Output on Pump Failure

Husky Energy Inc. (HSE)’s refinery in Lima, Ohio, isn’t producing diesel because it needs to replace a pump in the unit that makes the fuel, according to a person familiar with operations.

The plant hopes to make the repairs to the diesel hydrotreater this weekend, said the person, who asked not be be identified because the information isn’t public. The unit has been offline for about a week.

Ultra low sulfur diesel on the spot market in Chicago strengthened by 12.5 cents a gallon to a premium of 7.5 cents above futures on the New York Mercantile Exchange at 2:37 p.m., according to data compiled by Bloomberg. It’s the biggest premium for the fuel since June.

Mel Duvall, a Husky spokesman, declined to comment on refinery operations in an e-mailed statement.

The refinery, which has the capacity to process 160,000 barrels of crude a day, is running at between 100,000 and 120,000 as workers struggle to keep pipes thawed amid freezing temperatures, according to the person.

To contact the reporters on this story: Dan Murtaugh in Houston at dmurtaugh@bloomberg.net; Barbara Powell in Houston at bpowell4@bloomberg.net

To contact the editor responsible for this story: Dan Stets at dstets@bloomberg.net

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