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UPDATE 1-Valero says Port Arthur. TX. refinery at 260,000 bpd

Mon Nov 12, 2007 6:50pm EST

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HOUSTON, Nov 12 (Reuters) - Valero Energy Corp (VLO.N) said its 325,000 barrel per day (bpd) refinery in Port Arthur, Texas, was running at 260,000 bpd, its approximate throughput level prior to a Nov. 8 blaze on a diesel hydrotreater heater.

All units except for the diesel hydrotreater and a kerosene hydrotreater have restarted at the refinery, the company said.

"Gasoline production at Port Arthur is near planned rates, and the slightly reduced distillate production is being sent to other refineries inside and outside the Valero system for hydrotreating, so we expect little or no lost production," Valero said in a statement.

Sources familiar with refinery operations have said the diesel hydrotreater was expected to be shut for between two and four weeks.

The Nov. 8 fire began when a power failure shut several units on the north side of the refinery. Hot feedstock stopped moving in heater tubes on the hydrotreater, causing one of the tubes to crack open, according to sources familiar with refinery operations.

The Port Arthur refinery has been running at reduced production since August due to the failure of a system to remove petroleum coke from the coking unit.

Workers at the Port Arthur refinery are using bulldozers and dump trucks to haul away the coke. (Reporting by Erwin Seba; Editing by Christian Wiessner)



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