Ergon Refining, Inc. announces increased production capacity.

Tue., Aug 8, 2006

Jackson, Mississippi - Ergon Refining, Inc. today announced that the capacity to produce high quality, severely hydrotreated naphthenic base oils at its Vicksburg, Mississippi refinery will be increased to approximately 19,000 barrels per day. This project will provide additional support for projected growth in the rubber and electrical insulating oil industries both in the US and abroad at a projected capital investment cost in excess of $100-million. Ergon believes this demonstrates its continued dedication to supply customers the highest quality products and unparalleled service.

The increased capacity will be achieved by constructing three major new units at the refinery and adding new storage tank capacity. These units are expected to be online before the third quarter of 2008. New units include a 7.5-million cubic foot per day hydrogen generation unit that will convert natural gas into the hydrogen required for hydrotreating, an 8,000 barrel per day supercritical solvent deasphalting unit that will reduce residual oil production and produce a feedstock for new specialty oil production known as “bright stock” and a new very high pressure hydrotreater that will run up to 8,000 barrels per day of transformer oil and ultra low sulfur diesel. The new hydrotreater will be designed with built-in expandability to go up to 12,000 barrels per day if future demands for product require growth.

About Ergon-Refining, Inc.
Ergon Refining Inc. is a wholly owned subsidiary of Ergon, Inc ( with headquarters in Jackson, Mississippi. Ergon, Inc., privately held, operates under six primary business segments: Refining & Marketing, Asphalt & Emulsions, Transportation & Terminaling, Oil and Gas, Embedded Computing and Real Estate. Ergon owns and operates three petroleum refineries located in Mississippi, Arkansas and West Virginia, producing ultra low sulfur gasoline, ultra low sulfur diesel, lubricant and process base oils, asphalts and other specialty petroleum products.


Jim Temple
Media Relations Manager