Chevron, Flint Hills, Others Plan Maintenance at Major U.S. Refineries in Fourth Quarter

Researched by Industrial Info Resources (Sugar Land, Texas)--Following a summer in which U.S. refineries operated at a record-high utilization rate of 98.1%, the U.S. Gulf Coast region is set for a lighter-than-usual refinery turnaround schedule in the fourth quarter, while the U.S. Mid-Continent region will face a heavier-than-usual maintenance slate, according to Oil & Gas Journal. Industrial Info is tracking more than $170 million in refining maintenance projects across four U.S. market regions that are planned for the fourth quarter.

Click on the image at right for a graph detailing U.S. refining maintenance projects planned for the fourth quarter, by state.

Chevron Corporation (NYSE:CVX) (San Ramon, California) is planning several turnarounds on key units at its 53,000-barrel-per-day (BBL/d) Salt Lake City Refinery in North Salt Lake, Utah:

• the 52,000-BBL/d Crude Distillation Unit 21 and 25,600-BBL/d Vacuum Unit, plus supporting utilities; see project report
• the 13,000-BBL/d Fluid Catalytic Cracking Unit (FCCU) Unit 2; see project report
• the 7,200-BBL/d Delayed Coker Unit; see project report
• the 20,000-BBL/d Vacuum Gas Oil (VGO) Hydrotreater Unit; see project report

Chevron announced last year that it plans to transition the Salt Lake Refinery to cleaner-burning fuel by the end of 2019. However, the company is asked the U.S. Environmental Protection Agency (EPA) in April for an exemption to the nation's Renewable Fuels Standard (RFS). The waiver requested by Chevron originally was designed for refineries producing less than 75,000 BBL/d that could demonstrate a "disproportionate economic hardship" from complying with RFS, but the EPA granted Andeavor Corporation (NYSE:ANDV) (San Antonio, Texas), one of the nation's largest refiners, the same exemption just a week before Chevron's request was made.

Flint Hills Resources Limited Partnership, a subsidiary of Koch Industries Incorporated (Wichita, Kansas), is preparing to begin a trio of maintenance turnarounds at its refinery's East site in Corpus Christi, Texas, following the completion of similar projects at its West site last quarter:

• the 45,000-BBL/d Fluid Catalytic Cracking Unit (FCCU) Unit; see project report
• the 60,000-BBL/d Crude Distillation Unit and 30,000-BBL/d Vacuum Unit; see project report
• the 20,000-BBL/d Kerosene/Diesel Unit, plus supporting utilities; see project report

Husky Energy Incorporated (TSX:HSE) (Calgary, Alberta) owns three refineries in the U.S., including the Lima Refinery in Lima, Ohio, which the company currently is expanding through a series of upgrades that are expected to wrap up later this year. Regular maintenance that is expected to be performed at that time includes:

• the 30,000-BBL/d Kerosene/Diesel Hydrotreater, plus supporting utilities; see project report
• the 165,000-BBL/d Crude Distillation Unit and Vacuum Unit; see project report
• the 55,000-BBL/d Reformer and 63,000-BBL/d Reformer Feed Hydrotreater Unit; see project report

Husky is optimistic about its U.S. refining business, which it said in a recently quarterly earnings-related conference call is "well-positioned to benefit from discounted Midland barrels and we are plugged in to the fast-growing energy markets in Asia."

Calumet Specialty Products Partners (NASDAQ:CLMT) (Indianapolis, Indiana) announced in a recently quarterly earnings call that the company's maintenance spending would see "heavier maintenance activity across our assets," which includes three maintenance turnarounds scheduled to begin in November and end in early December at its Cotton Valley Refinery in Cotton Valley, Louisiana:

• the 13,500-BBL/d Crude Unit 1, plus supporting utilities; see project report
• the 5,000-BBL/d Naphtha Distillate Hydrotreater, plus supporting utilities; see project report
• the 500-BBL/d Isomerization Unit and Residual Unit, plus supporting utilities; see project report

Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, six offices in North America and 12 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle™, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities. Follow IIR on: Facebook - Twitter - LinkedIn. For more information on our coverage, send inquiries to info@industrialinfo.com or visit us online at http://www.industrialinfo.com/.