Western Refining trimming New Mexico units

By OGJ editors
HOUSTON, Nov. 10
-- Western Refining Inc., El Paso, is consolidating operations of its two small refineries in New Mexico to reduce operating costs in a period of shrunken refining margins.

To be consolidated at Gallup are the 23,000 b/d refinery there and the 17,000 b/d facility at Bloomfield, which will be idled. Western said total crude throughput will not decline from recent combined levels, which in the first 9 months of this year averaged 25,560 b/d.

The company said the move will cut operating costs by about $25 million/year beginning in the first quarter of 2010.

The Gallup refinery’s processing capacities include 7,000 b/d of catalytic cracking, 8,000 b/d of catalytic reforming, 16,500 b/d of catalytic hydrotreating, 2,500 b/d of alkylation, and 5,000 b/d of isomerization.

Bloomfield’s capacities are 5,000 b/d of catalytic cracking, 5,100 b/d of catalytic reforming, 8,300 b/d of catalytic hydrotreating, and 2,000 b/d of polymerization.

The refineries, about 95 miles apart, process mainly light sweet crude and natural gas liquids produced nearby. Western owns more than 250 miles of crude gathering lines.

“The company is evaluating alternative uses for the Bloomfield refinery, including the possibility of biofuels production,” Western said in a press statement.

Western also operates a 128,000 b/d refinery in El Paso and a 70,000 b/d refinery in Yorktown, Va.

Citing the margin squeeze and low differentials between heavy and sour crude, the company reported a third-quarter loss of $4.8 million, compared to a profit of $109.2 million for the same period last year.

Related Articles

EPA leads investigation of crude discharge at BP Whiting refinery

03/26/2014 The US Environmental Protection Agency took formal charge of investigation and cleanup efforts after an undetermined amount of crude oil spilled in...

TonenGeneral slashes crude capacity at Chiba refinery

03/26/2014 TonenGeneral Sekiyu KK said it plans to cut crude oil processing capacity at its 175,000-b/d Chiba refinery Keiyo, Japan, to comply with a 2010 ord...

Neste Oil advances power plant revamp at Porvoo refinery

03/26/2014 The environmental impact assessment report on a project to modernize the power plant at Neste Oil’s 205,000-b/d Porvoo, Finland, refinery has been ...

Yanchang Petro lets contract for Chinese processing plants

03/26/2014 Shaanxi Yanchang Petroleum (Group) Co. Ltd. (Yanchang Petro) has let a contract to Yokogawa China Co. Ltd., a subsidiary of Yokogawa Electric Corp....

Careers at TOTAL

Careers at TOTAL - Videos

More than 600 job openings are now online, watch videos and learn more!

 

Click Here to Watch

Other Oil & Gas Industry Jobs

Search More Job Listings >>
Stay Connected