VOL. 126 | NO. 162 | Friday, August 19, 2011
Valero Restarting Refinery Units After Fire
SAN ANTONIO (AP) – Valero Energy Corp. on Thursday said it is in the process of restarting units at its Memphis refinery, which was shut down after a fire on Aug. 5. It warned the shutdown will lead to lower production and higher costs.
The restart is under way at one crude distillation unit. Another is expected to restart by September.
Because of the disruption, Valero lowered its production expectations in the third quarter for its mid-continent region. It now expects to produce 370,000 to 380,000 barrels per day in the region, down from an original estimate of 420,000 to 430,000 barrels per day.
Valero now expects its system-wide refinery operating expenses to be $4.05 per barrel in the third quarter, above its previous estimate of $3.80 per barrel.
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