Husky Energy's Ohio refinery hampered by string of incidents

NEW YORK (Reuters) - Husky Energy Inc said on Tuesday that its 155,000 barrel-per-day refinery in Lima, Ohio, was running at 70 percent to 80 percent of its capacity following multiple incidents over the weekend.

The first incident occurred Saturday when a small fire broke out while the company was restarting a 23,000-bpd coker unit after planned maintenance. The unit is now expected to be down for up to three weeks as the company repairs electrical wiring damaged in the fire, a source familiar with the plant said on Tuesday.

Husky spokesman Mel Duvall wrote in an email on Tuesday: “A repair plan for the unit is being finalized.”

The source said the company was considering idling the entire plant while the repairs are under way.

On Sunday, the company shut a 40,000-bpd fluid catalytic cracker after a partial power outage, the source said.

The gasoline-making unit was in the process of restarting on Monday night, according to Energy News Today.

Chicago CBOB gasoline grade for cycle-3 September is being pegged a couple of pennies stronger at 22 cents over October RBOB futures. In the neighboring Group Three market, also in the Midcontinent, gasoline is off 0.50 cent, pegged at 8.00 cents over October RBOB.

Chicago ULSD is pegged at 5.00 cents over October ULSD, a 1.50-cent stronger differential from Monday. Group Three ULSD is valued at 0.50 cent below the October benchmark futures, a quarter-cent weaker from Monday.

October RBOB rose 1.33 cents to settle at $1.4164 a gallon, having traded from $1.3682 to $1.4240. October ULSD rose 1.80 cents to settle at $1.5320 a gallon, after trading from $1.4802 to $1.5344.

Husky’s refinery was already running at reduced rates since January, when an isocracker unit exploded. Husky has said the isocracker would restart after a refinerywide turnaround slated to begin in March.

Reporting by Jarrett Renshaw and Robert Gibbons; Editing by Lisa Von Ahn and Lisa Shumaker