Industrial Info's Weekly North American Refining Report

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Researched by Industrial Info Resources (Sugar Land, Texas)--Industrial Info's weekly North American Refining Report gives you the latest inside intelligence on outages, derates, delays and more. And now, there is an interactive, dynamic North America Refining Capacity Dashboard available to further power your refinery capacity research.

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Market Commentary
Hurricane Delta made landfall mere miles from where Hurricane Laura came ashore.



As Hurricane Delta passed through the Gulf of Mexico, 272 manned platforms were evacuated, totaling 1,693,232 barrels per day (BBL/d) of crude oil capacity and 1.67 billion cubic feet per day of natural gas capacity.

Sempra halted restart activities at its 15 million-ton-per-year liquefied natural gas (LNG) liquefaction plant, following an extended outage caused by Hurricane Laura and widespread power outages in the Lake Charles area. Freeport LNG and Cheniere Energy's Sabine Pass plants were expected to continue operations at reduced rates with limited personnel throughout Hurricane Delta. Kinder Morgan has declared a force majeure event along certain segments of its Natural Gas Pipeline of America system, affecting several points in the Cameron and Vermilion parishes.

The ports of Houston and Galveston were closed to inbound traffic. Port conditions were "Yankee," which essentially means they expected to be hit within 24 hours. Locks were closed on the intracoastal waterway. Essentially, the same status existed for Beaumont, Port Arthur, Orange, Sabine, Port of Lake Charles and Port of New Orleans.

Ethylene producers LyondellBasell, Westlake Petrochemicals and LACC, which were returning to service after completing repairs from Hurricane Laura, have halted restart activities and were in the process of shutting down.

Phillips 66 and Citgo have paused the restart of their Louisiana refineries, which were taken down as a result of Hurricane Laura. These refineries process 662,000 BBL/d of crude oil. In addition, Shell placed its 260,000-BBL/d refinery in Convent, Louisiana, into hot-oil circulation, and Delek curtailed rates at its 74,000-BBL/d refinery in Krotz Springs, Louisiana, in preparation for the hurricane.

The U.S. Energy Information Administration reported a surprising 500,000-barrel build of U.S. crude oil inventories.



BarChart reports: "The energy complex on Friday closed with moderate losses. Crude prices fell back from 2 1/2-week highs and moved lower on demand concerns. Losses were limited by hopes that U.S. lawmakers will eventually agree on a pandemic relief package, which would be positive for energy demand and crude prices.

A survey on worldwide oil demand released Friday by the Kansas City Fed shows most energy executives do not expect global oil demand to rebound until late 2022 or 2023, as the effects of the COVID-19 pandemic linger.

A decline in the crack spread Friday to a one-week low is negative for crude prices, as that weakness discourages refiners from boosting crude purchases to refine into gasoline.

These trends place some refiners at economic risk. Thanks to Industrial Info's strategic alliance partner Refinery Calc, we can report on these refineries in more depth.

The Industrial Info and Refinery Calc teams combine in-depth research with refinery techno-economic analysis to provide deeper insight like never before.

So, intriguing times indeed here in North America as one tries to get a good handle on the overall SnD picture and its impact on the energy industry. Therefore, within this North America Refining Report, Industrial Info hopes to shed some light on what is transpiring from a refinery operations perspective all the way down to the refinery level in Canada. Incorporating a North America Refinery Map as well as area chart to illustrate collectively when we can expect refinery capacity to return over the next month or so. For the U.S., Industrial Info is even providing a chart to indicate when we might expect PADDs themselves to become healthier.

Petroleum Refining Highlights
October 9, 2020 - Total on October 8 shut down the 40,000-BBL/d Crude ACU-2 and the 51,000-BBL/d Vacuum Distillation 1, prior to arrival of Hurricane Delta at its 190,000-BBL/d refinery in Port Arthur, Texas. Industrial Info continues to monitor plant activities and will issue an update when new information becomes available.

October 8, 2020 - Placid Refining on October 8 reduced its 80,000-BBL/d refinery in Port Allen, Louisiana, to minimum rates (50%) before the expected landfall of Hurricane Delta. Industrial Info continues to monitor plant operations as the storm makes landfall.

October 8, 2020 - Phillips 66 remains shut down at its 250,000-BBL/d Alliance Refinery in Belle Chasse, Louisiana, after shutting previously due to Hurricane Sally. At this time, the facility is expected to remain offline until the end of the year.

October 8, 2020 - Industrial Info has confirmed that Pemex TRI continues to shut down since June 12 the 6,000-BBL/d HF Alkylation 2 unit at its 270,000-BBL/d refinery in Cadereyta, Mexico. The Alky 2 planned turnaround completion continues to be delayed due to the COVID-19 pandemic, with a restart now possible by mid- to late October. The 120,000-BBL/d Combinada 1 (Crude 1)--offline since early May 2020 due to COVID-19 risk and under preventive repairs since August 24 to take advantage of the downtime--continues on schedule, to be completed by mid-October. The 150,000-BBL/d Combinada 2 (Crude 2) unit is running at 105,000 BBL/d; the remaining operational units are processing at approximately 39% of normal capacity. Industrial Info continues to monitor the refinery operations and will issue an update when more details become available.

Map of North American Refineries Impacted by COVID-19/non-COVID -- Ongoing Offline Events


North America Refining Index


North American Refining Area Chart


Canada Refineries


US PADDs






Map of North American Refineries Impacted by COVID-19/non-COVID -- Future Offline Events


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.