UPDATE 1-Valero's refineries to run below capacity in Q2

(Recasts throughout, adds additional refinery operations)

HOUSTON, April 28 (Reuters) - Leading U.S. refiner Valero Energy Corp (VLO.N) said on Tuesday it will cut production at its 16 oil refineries in the second quarter due to planned work and to match sharply reduced demand for motor fuel, which has been crushed by the recession.

The refineries, with a combined capacity of 3.1 million barrels per day (bpd), are planned to run between 2.44 million and 2.52 million bpd in the second quarter, Valero executives said in a conference call to discuss first-quarter results.

The refineries ran at 2.75 million bpd in the same period a year ago.

Valero said its Gulf Coast refineries are expected to run below capacity at between 1.35 million and 1.4 million bpd in the second quarter.

The refineries in Valero's Gulf Coast system are located in Texas, Louisiana and on the island of Aruba and have a combined capacity of 1.635 million bpd. In the second quarter of 2008, the Gulf Coast refineries ran at 1.495 million bpd.

The San Antonio company's West Coast refineries should run between 270,000 and 280,000 bpd, down from a total capacity of 305,000 bpd. In the same period last year, the refineries, located in California, ran at 285,000 bpd.

Valero's Northeast refineries are planned to run between 460,000 and 470,000 bpd, down from a capacity of 620,000 bpd and down from 527,000 bpd in the same period a year ago.

Valero Chief Executive Bill Klesse said the company was restarting its 210,000 bpd Delaware City, Delaware, refinery which was shut in February for work on a coker. The work was expanded to include the refinery's steam-generation system.

Valero's Mid-Continent refineries are planned to run at 360,000 and 370,000 bpd in the second quarter. The plants have a capacity of 455,000 bpd. Those refineries ran at 439,000 bpd in second quarter of 2008. (Reporting by Erwin Seba; Editing by Marguerita Choy)