Refinery shutdown coming

Valero Energy says it is shutting down its entire Texas City refinery rather than keep parts of it open while some units undergo maintenance because refining margins are weak and demand for gasoline is down.
Bill Klesse, Valero’s chairman and CEO, says refiners “must continue to use discipline in matching production wiht demand” and the company is doing that in part by shutting down the entire plant while parts of it undergo seasonal maintenance.
Valero’s Texas City plant is the 32nd-largest refinery in the country with ability to process up to 199,500 barrels per day.
In addition, the company has shut down a unit at its Corpus Christi plant that primarily makes gasoline.
The company announced the moves when it unveiled quarterly earnings this morning.
Valero spokesman Bill Day says the turnaround is slated to last 45 days. While the entire Texas City plant will shut down, parts of it could restart during that span if market conditions improve.
Day also says it “is not unheard of” for a refiner to shut down an entire plant during a major unit turnaround.
“In this instance, since two of the refinery’s main units were going to be shut down, we decided to shut the rest of the refinery for economic and logistic reasons. It was more cost-efficient to take the units offline than to bring in feedstocks for the remaining units,” he said.

SHOW MORE