Petroplus Resichstett Refinery Operating at Reduced Production Rates

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Researched by Industrial Info Resources (Sugar Land, Texas)--During the fourth quarter of 2010, Petroplus Holdings AG (VTX:PPHN) (Zug, Switzerland) announced that it would cease operations at the Reichstett refinery, located in the Alsace region of northeast France. The 85,000-barrel-per-day (BBL/d) refinery, acquired from Royal Dutch Shell plc (NYSE:RDS.A) (The Hague, Netherlands) in 2008, has had shutdowns that began during the last quarter of 2009 and began running at a reduced production rate last December.

Throughout the second and third quarters of 2010, Petroplus conducted evaluations to determine the best course of action during the significant drop in refining profit margins. Petroplus considered several different possibilities, including selling the refinery or converting it into a terminal. A lack of interested buyers led Petroplus to begin stopping refining activities, with the intent to convert the Reichstett refinery into a terminal. A solid closure date remains uncertain. However, refinery authorities have mentioned the end of March as a possible date.

Currently Petroplus, which operates two refineries in France, has a $2 million maintenance turnaround scheduled for the hydrodesulfurization unit in April. It is uncertain whether or not the company will carry out the turnaround with closure and conversion on the horizon, in spite of the recovery being felt throughout the global refining sector.

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