Valero Refineries to Run Up to 88% of Capacity in Q1 2023

SEATTLE (Oil Monster): Valero Energy Corp (VLO.N), the nation's second largest refiner, plans to operate its 14 crude oil refineries between 85% and 88% of their combined total throughput capacity of 3 million barrels per day (bpd) in the first quarter of 2023, said Homer Bhullar, vice president of investor relations.

During the fourth quarter of 2022, Valero's refineries operated at 97% of their combined total throughput capacity, the highest level since 2018, said Chief Executive Joe Gorder during a Thursday conference call to discuss fourth-quarter results with Wall Street analysts.

Chief Operating Officer Lane Riggs said the drop in refinery utilization between the end of 2022 and early 2023 was a heavy maintenance schedule at the company's refineries.

"Obviously, we have some maintenance occurring, our turnarounds are occurring in Q1 and that's normal for us," Riggs said. "That's when we do turnarounds. This is a heavy quarter for us versus the rest of the year."

Valero Energy Corp (VLO.N) plans to begin the initial startup of a new coker at its 335,000 barrel-per-day (bpd) Port Arthur, Texas refinery between late April and early May, Riggs said.

"I'm going to be fairly specific right here," Riggs said. "We're going to be mechanically complete somewhere late February, early March. And we expect oil in somewhere late April or early May."

Oil in is the industry term for beginning the start up of a refining unit.

Cokers convert residual crude oil from distillation units into feedstocks for motor fuels or petroleum coke, which can be used as a coal substitute.

Courtesy: www.reuters.com