UPDATE 2-Valero's refineries to run as low as 73 pct in Q4
(Recasts throughout with capacities, Q3 run rates)
By Erwin Seba
HOUSTON, Oct 27 (Reuters) - Leading U.S. refiner Valero Energy Corp (VLO.N) said on Tuesday its 16 refineries could run as low as 73 percent of their combined capacity of 2.99 million barrels per day in the fourth quarter due to shutdowns for poor economics and unit overhauls.
The utilization rate of Valero's refineries is currently in the low 80 percent range, executives said during a conference call Tuesday morning to discuss third-quarter results.
In addition to current and planned plantwide shutdowns, Valero has shut individual units at some of its refineries due to poor margins in the economic downturn.
Combined throughput of Valero's refineries is planned to be between 2.19 million and 2.27 million bpd in the current quarter.
In the third quarter, the San Antonio-based company said its refineries ran at 2.38 million bpd, or 79.5 percent of capacity.
During that period Valero shut indefinitely its 235,000 bpd Aruba refinery due to poor margins driven by low demand for motor fuels in the U.S. and higher costs for crude oil.
The company's Gulf Coast refineries will run between 1.15 million bpd and 1.2 million bpd in the fourth quarter, the company said, down from a 1.6-million bpd capacity. Much of the lost throughput is due to the Aruba shutdown.
The Gulf Coast plants ran at 1.24 million bpd in the third quarter.
On the West Coast, Valero expects its two California refineries to run between 230,000 and 240,000 bpd while its 135,000 bpd Los-Angeles-area refinery in Wilmington, California, goes through what is essentially a plantwide shutdown in November for work on a gasoline unit.
The California refineries have a combined capacity of 305,000 bpd and ran at 282,000 bpd in the third quarter.
The company's Northeast refineries will run between 430,000 and 440,000 bpd in the fourth quarter while the 210,000 bpd Delaware City, Delaware, refinery is shut for a gasoline unit overhaul, beginning in November, for nearly two months.
The Northeast refineries have a combined capacity of 630,000 bpd and ran at 485,000 bpd in third quarter.
Valero plans to run its Mid-continent refineries between 380,000 and 390,000 bpd during the last quarter of the year. Those plants have a throughput capacity of 455,000 bpd and ran at 374,000 bpd in the third quarter. (Editing by Marguerita Choy)
