UPDATE 1-EnCana sees 4-9 month delay at US refinery project

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CALGARY, Alberta, July 24 (Reuters) - EnCana Corp (ECA.TO: Quote, Profile, Research, Stock Buzz) now believes a major conversion project at the Wood River, Illinois, refinery it co-owns with ConocoPhillips (COP.N: Quote, Profile, Research, Stock Buzz) will be up to nine months behind schedule due to regulatory delays, an executive said on Thursday.

The companies are still working to regain environmental approvals for the project, which would boost the refinery's capacity to process Canadian heavy crude by 130,000 barrels a day, said Vice-President Brian Ferguson, who will lead EnCana's integrated oil firm after it splits from the natural gas unit early next year.

"Air permit delays are expected to impact the start of site construction for the project, resulting in a delay in the range of four to nine months from original plan," Ferguson said in a conference call.

The partners had previously expected to begin work on the project at the start of this month.

They received approval from the Illinois Environmental Protection Agency a year ago, but environmental groups appealed the decision and the federal EPA's Environment Appeals Board sent the decision back to the state agency early last month.

ConocoPhillips is working with regulators to resolve issues and win back the permits, Ferguson said.

The original price for the project was $4 billion, but Ferguson said in June that the delays have added to costs.

"We plan to provide details of the timing and costs of this project when that air permit is granted," he said on Thursday.

EnCana had expected the refinery project to be completed in 2010. (Reporting by Jeffrey Jones; Editing by Peter Galloway)