The $90m naphtha isomerization project is designed to meet the future reduced-sulfur gasoline regulations while simultaneously reducing gasoline production costs.
The $300m mixed xylenes project intends to upgrade and diversify the product slate value of the facility.
Tesoro chairman, president and CEO Greg Goff said: "Tesoro is pleased to announce this strategic commitment to our Anacortes facility and to the local community.
"These high-return capital projects are expected to produce cleaner fuels at a lower cost, while diversifying Tesoro’s product mix and enhancing our gross margin."
Based on Tesoro’s market estimates, the isomerization project and mixed xylenes project are expected to generate competitive returns of approximately 25% and 20%, respectively.
Subject to approval, the mixed xylene project is planned for startup in 2017 and the isomerization project startup is scheduled in 2018.
