The board of directors of Consumers' Co-operative Refineries has approved a $1.9-billion expansion project at its refinery in Regina.

The refinery, which is owned by Federated Co-operatives Ltd., will increase its processing capacity from 100,000 barrels of crude oil per day to 130,000.

The company said Thursday the expansion is needed to meet the growing demand for gasoline and diesel.

The project is scheduled to be finished in 2012.

It's expected to create 75 full-time jobs.

About 575 people work at the refinery on the north end of the city.

The project still needs the approval of the Saskatchewan Environment Department.