Essar plans capacity cut at Stanlow refinery

India’s Essar Energy PLC is planning to shut down a crude distillation unit at its Stanlow refinery in the UK near Ellesmere Port, Cheshire, in an effort to boost refining margins and ensure the plant’s ongoing viability.

The company will be mothballing its smaller CD3 crude unit by October 2014, which will reduce fuel oil and naphtha production and improve absolute margins, according to Essar’s latest interim management statement, issued on Feb. 18. 

With the unit’s shutdown, crude oil processing capacity at the Stanlow refinery will fall to about 195,000 b/d from its current nameplate capacity of 296,000 b/d, with the refinery‘s yield profile expected to become 33% gasoline, 57% kerosene and diesel, and 3% fuel oil, the company said.

The decision to shutter the unit comes as a result of the refinery’s poor financial performance as well as the overall weakness in Europe’s refining industry environment, according to the company.

In addition to closing the unit, the company also is embarking on an estimated $100 million cost-improvement program designed to enable the plant to weather the current period of “exceptionally poor refining margins” in Europe, Essar said.

Currently, the Stanlow refinery is operating at about 70% (207,000 b/d) of its nameplate capacity, according to the company’s website.

Related Articles

Phillips 66 considers splitter at Sweeny refinery

03/21/2014 Phillips 66 is evaluating the potential for the addition of a condensate splitter near its 247,000-b/d Sweeny refinery in Old Ocean, Tex., just sou...

Second small diesel refinery planned for North Dakota

03/21/2014 Quantum Energy Inc. (QEI), Tempe, Ariz., said it has secured land for the construction of a 20,000-b/d grassroots hydroskimming refinery in North D...

Flint Hills settles Port Arthur pollution case

03/20/2014 Flint Hills Resources (FHR) has reached a settlement with the US federal government to implement innovative technologies to control harmful air pol...

WoodMac: Global ethylene demand, production on the rise

03/20/2014 Ethylene-producing assets that have access to low-cost natural gas feedstocks, such as the ones in North America, will lead the competition in glob...

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