UPDATE 1-Valero delays Delaware work, plans TX overhaul

(Recasts with additional details about Delaware delay)

HOUSTON, July 28 (Reuters) - Leading U.S. refiner Valero Energy Corp (VLO.N) on Tuesday postponed a Delaware refinery gasoline unit overhaul from the fall until 2010 and said it would shut its Three Rivers, Texas, refinery for a plantwide overhaul in September.

The overhaul of the 82,000 barrel-per-day (bpd) fluidic catalytic cracking unit at Valero's 182,000-bpd Delaware City, Delaware, refinery is to coincide with the planned arrival of pollution control equipment at the refinery in 2010, said Valero spokesman Bill Day.

"It will save money to combine the work," Day said.

U.S. refiners have been seeking ways to cut maintenance costs at their plants since mid-2008 as refining returns have been wiped out by disappearing demand for motor fuels in the economic downturn.

Valero reported a loss in the second quarter due to poor demand and higher-than-expected costs for sour and heavy crude oils grades, which are the primary feedstock at its U.S. plants.

The pollution control equipment will reduce nitrogen oxide pollution from the Delaware City cat cracker, Day said.

For the rest of 2009, Valero plans only a plantwide turnaround at its 100,000-bpd Three Rivers, Texas, refinery, the company said.

Previously, Valero had planned to only shut the crude unit and the cat cracker at the Three Rivers refinery.

At the start of the third quarter in 2008, Valero announced planned work at six of its refineries. (Reporting by Erwin Seba; Editing by Lisa Shumaker)