Phillips' Bayway Refinery Accelerates Maintenance Turnaround Schedule

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Researched by Industrialinfo.com (Industrial Information Resources, Incorporated; Houston Texas). Phillips Petroleum Company (NYSE:P) (Bartlesville, OK) is planning a mid summer turnaround on a major gasoline producing unit. The turnaround, originally scheduled for October of 2002, has been rescheduled for July of 2002.

Phillips has decided to reschedule the turnaround mainly due to labor issues at the refinery. The current labor contract at the refinery expires in October 2002. This has prompted Phillips to perform the turnaround before the contract is up. If the contract is signed in next few months the turnaround will revert to the original October schedule. Gasoline, mainly reformulated, is in high demand during the summer season.

"If the July turnaround occurs, it may cause a shortage of gasoline on the East Coast, which could lead to higher prices for gas at the pump," states Chris Paschall, Petroleum Refining Group Manager for Industrialinfo.com. "The problem could multiply if other refiners in the area have any unplanned problems with production or transportation." The Bayway Refinery, located in Linden, New Jersey, is the northernmost refinery on the eastern seaboard and has the largest fluid catalytic cracking unit in the world. The refinery has a crude capacity of 250,000 barrels per day (BPD) and produces 131,000 BPD of gasoline.

Phillips Petroleum Company's operations now span the globe. The company is engaged in petroleum exploration and production on a worldwide scale, natural gas gathering, processing, and marketing in North America through equity interest in Duke Energy Field Services, petroleum refining, marketing, and transportation in the United States, chemicals and plastics production and distribution worldwide through equity interest in Chevron Philips Chemical Company, and developing technology for its own use, as well as for licensing, worldwide.