By Erwin Seba
HOUSTON, April 4 (Reuters) - Tesoro Corp said on Sunday that crude oil intake at its Anacortes, Washington, refinery was down to about 70 percent of its 120,000 barrel per day (bpd) capacity after a deadly explosion and fire on Friday.
Production of clean gasoline and diesel at the Anacortes refinery was one-third of normal, or about 25,000 bpd, according a statement by Tesoro spokesman Lynn Westfall.
Five workers have died from injuries suffered in an early Friday morning explosion and fire at a naphtha hydrotreater that was in the process of being returned to service following a period of 'minor maintenance,' according to Westfall.
Two other employees remain in a Seattle hospital burn ward, according to a hospital spokeswoman.
The Anacortes refinery explosion and fire is the worst U.S. refinery accident since a 2005 explosion at BP Plc's Texas City, Texas, refinery killed 15 workers and injured 180 other people.
Investigators from the U.S. Chemical Safety and Hazard Investigation Board were scheduled on Sunday afternoon to tour the site of the explosion at the Anacortes refinery, according to a spokeswoman.
Outgoing Tesoro Chairman and Chief Executive Bruce Smith visited the refinery on Saturday, Westfall said.
'Mr. Smith did not have a general meeting with employees but walked about the plant talking to individuals and addressing questions and concerns,' Westfall said.
Smith is scheduled to step down on June 4 when he will be replaced as chief executive by former ConocoPhillips executive Greg Goff.
The Tesoro refinery accounts for 19 percent of Washington state's total refining capacity of 627,850 bpd and 7 percent of the West Coast's combined refining capacity of 1.67 million barrels.
Both Tesoro executives and a West Coast refining consultant have said large stockpiles of gasoline on hand in regional inventories would likely blunt the impact of the refinery's reduced production.
'(West Coast) stockpiles are more than 10 percent higher than last year,' David Hackett, president of energy consultancy Stillwater Associates, said on Friday. 'Inventories are very healthy, especially for this time of year.'
The large inventory is unusual as most West Coast refiners complete seasonal refinery overhauls by April to be ready for the high demand of the summer driving season. That normally leaves regional inventories at low levels. This year is an exception.
West Coast wholesale refined products markets were shut on Friday for the three-day Easter holiday weekend.
On Thursday gasoline finished in the Los Angeles wholesale market at an outright price of $2.3037 per gallon, 2 cents under the per-gallon price for NYMEX May RBOB gasoline.
In the Portland, Oregon, market, gasoline finished at $2.2637 a gallon, a 6-cent discount from the NYMEX May RBOB contract.
The term clean gasoline describes gasoline that has pollutants removed, including sulfur. A naphtha hydrotreater removes sulfur from naphtha, which is then reformulated to be a a blendstock that boosts octane in gasoline.
(Editing by Steve Orlofsky)
((erwin.seba@thomsonreuters.com; +1 713 210 8508; Reuters Messaging: erwin.seba.reuters.com@reuters.net)) Keywords: REFINERY OPERATIONS/TESORO ANACORTES (For help: Click 'Contact Us' in your desk top, click here or call 1-800-738-8377 for Reuters Products and 1-888-463-3383 for Thomson products; For client training: training.americas@thomsonreuters.com ; +1 646-223-5546) COPYRIGHT Copyright Thomson Reuters 2010. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.
HOUSTON, April 4 (Reuters) - Tesoro Corp said on Sunday that crude oil intake at its Anacortes, Washington, refinery was down to about 70 percent of its 120,000 barrel per day (bpd) capacity after a deadly explosion and fire on Friday.
Production of clean gasoline and diesel at the Anacortes refinery was one-third of normal, or about 25,000 bpd, according a statement by Tesoro spokesman Lynn Westfall.
Five workers have died from injuries suffered in an early Friday morning explosion and fire at a naphtha hydrotreater that was in the process of being returned to service following a period of 'minor maintenance,' according to Westfall.
Two other employees remain in a Seattle hospital burn ward, according to a hospital spokeswoman.
The Anacortes refinery explosion and fire is the worst U.S. refinery accident since a 2005 explosion at BP Plc's Texas City, Texas, refinery killed 15 workers and injured 180 other people.
Investigators from the U.S. Chemical Safety and Hazard Investigation Board were scheduled on Sunday afternoon to tour the site of the explosion at the Anacortes refinery, according to a spokeswoman.
Outgoing Tesoro Chairman and Chief Executive Bruce Smith visited the refinery on Saturday, Westfall said.
'Mr. Smith did not have a general meeting with employees but walked about the plant talking to individuals and addressing questions and concerns,' Westfall said.
Smith is scheduled to step down on June 4 when he will be replaced as chief executive by former ConocoPhillips executive Greg Goff.
The Tesoro refinery accounts for 19 percent of Washington state's total refining capacity of 627,850 bpd and 7 percent of the West Coast's combined refining capacity of 1.67 million barrels.
Both Tesoro executives and a West Coast refining consultant have said large stockpiles of gasoline on hand in regional inventories would likely blunt the impact of the refinery's reduced production.
'(West Coast) stockpiles are more than 10 percent higher than last year,' David Hackett, president of energy consultancy Stillwater Associates, said on Friday. 'Inventories are very healthy, especially for this time of year.'
The large inventory is unusual as most West Coast refiners complete seasonal refinery overhauls by April to be ready for the high demand of the summer driving season. That normally leaves regional inventories at low levels. This year is an exception.
West Coast wholesale refined products markets were shut on Friday for the three-day Easter holiday weekend.
On Thursday gasoline finished in the Los Angeles wholesale market at an outright price of $2.3037 per gallon, 2 cents under the per-gallon price for NYMEX May RBOB gasoline.
In the Portland, Oregon, market, gasoline finished at $2.2637 a gallon, a 6-cent discount from the NYMEX May RBOB contract.
The term clean gasoline describes gasoline that has pollutants removed, including sulfur. A naphtha hydrotreater removes sulfur from naphtha, which is then reformulated to be a a blendstock that boosts octane in gasoline.
(Editing by Steve Orlofsky)
((erwin.seba@thomsonreuters.com; +1 713 210 8508; Reuters Messaging: erwin.seba.reuters.com@reuters.net)) Keywords: REFINERY OPERATIONS/TESORO ANACORTES (For help: Click 'Contact Us' in your desk top, click here or call 1-800-738-8377 for Reuters Products and 1-888-463-3383 for Thomson products; For client training: training.americas@thomsonreuters.com ; +1 646-223-5546) COPYRIGHT Copyright Thomson Reuters 2010. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.