Citgo Illinois Refinery Shut Down After Fire, Trigger Of Blaze Unknown
LEMONT, Sick. Oct 24 (Reuters) – Citgo Petroleum Corp effectively shut down its refinery near Chicago after a fireplace at its main crude unit, saying it did not know when operations may resume.
Benchmark gasoline futures spiked 1.5 percent after news of the Wednesday night time hearth at the 174,500 barrel per day (bpd) refinery in Lemont, brent crude oil price april 2014 Illinois. Citgo stated it shut down the crude distillation unit, the workhorse of any refinery that processes crude oil into feedstock for other models within the plant.
“At the moment we should not have a schedule on when the crude unit will once more be operational,” Citgo mentioned in a press release. “The refinery operations have been significantly diminished, but we do have some downstream units still in operation.”
A supply accustomed to the refinery’s operations earlier informed Reuters that the plant was “pretty much shut down,” and without the crude unit Citgo is likely to quickly run out of secondary feedstock wanted to run the secondary units. Business group Genscape mentioned two other main units were already shut.
The supply stated the extent of the damage to the crude unit was not recognized. The unit was final shut for upkeep in spring 2012, in keeping with IIR Vitality. The refinery runs mostly heavy Canadian crude, government data show.
Native emergency fire officials stated the refinery’s internal fireplace workers of over a dozen individuals handled most of the exercise and managed to carry the fireplace below control inside three hours. One other 50 to 60 exterior firefighters assisted.
“The hearth wasn’t as large as it could have been,” Lemont Fireplace Chief George Rimbo mentioned. “We were able to manage it in a short time.”
They confirmed that there were no injuries or rescues. They did not know the reason for the fireplace or the extent of the harm.
Steam was seen coming from the stacks of some models on the refinery on Thursday, in line with continued operation of the downstream models. There was no smell of burning and no visible emergency autos. Vending trucks got here and went.
Native television showed nighttime photos of dark smoke emerging from the refinery, 30 miles southwest of Chicago, however no flames. The native ABC Television station quoted an unnamed refinery worker as saying a crew had been working on a valve when a crude oil leak caught fireplace.
“I do know there was so brent crude oil price april 2014 much of work being performed on the refinery, something sparked, which brought about the hearth,” Lemont Mayor Brian Reaves told the native NBC Television station.
Genscape later reported the 160,000 bpd CDU, the 71,000 bpd vacuum distillation unit (VDU) and a 28,000-bpd catalytic reformer had all been shut just after eight p.m. EDT (midnight GMT).
U.S. benchmark gasoline futures costs, which had closed close to their lowest since 2011 on Wednesday, jumped on Thursday, rising 1.5 % to $2.5896 a gallon on the brand new York Mercantile Change (NYMEX).
Chicago CBOB gasoline differentials over the NYMEX contract additionally jumped 10 cents a gallon on information of the fire. The refinery has the capability to produce 4 million gallons per day (95,000 bpd) of gasoline, in response to its webpage.
Units which can be downstream of the primary crude distillation unit (CDU) need to make use of feedstock that is readily available in the refinery or in storage tanks. Without the CDU, the stored inventories will run out and the refinery will both cease operations altogether or can choose to purchase feedstock from the market.
A 2012 crude unit fireplace at Chevron Corp’s Richmond, California, refinery shut the CDU for a number of months and cut gasoline manufacturing by no less than 50 percent.
Despite the fact that the refinery shouldn’t be the largest within the region, wholesale Chicago gasoline prices are spiking, said Patrick DeHaan, senior petroleum analyst at GasBuddy, a website that screens gasoline costs across the nation.
“It wouldn’t shock me if Chicago rallied for a couple of days. We want to listen to from Citgo the extent of damage – that will impact how long costs will rally,” DeHaan said.
But, he stated, drivers may not feel a significant impression within the brent crude oil price april 2014 close to term because Chicago gasoline costs have been tumbling previously week, with inventories on the rise and no serious refinery points till now.
Chicago CBOB gasoline differentials had been indicated 17.00/12.00 cents under November RBOB gasoline futures, while ultra-low sulfur diesel rose four.50 cents a gallon to 5.00/3.00 cents under November heating oil futures, traders mentioned.
Within the neighboring Group Three market, overlaying some Midwestern states, gasoline differentials rose 4.50 cents to 20.50/19.50 cents underneath the RBOB futures and ULSD rose 2.50 cents to 6.50/5.50 cents underneath heating oil futures.
Gulf Coast gasoline differentials rose by over 2 cents a gallon in anticipation of rising demand from the Chicago space.
The shutdown might also contribute to a hunch in cash crude markets as a consequence of weak demand from refiners that shut for routine maintenance within the autumn. One cash crude trader stated it was too quickly to inform what affect the hearth can have. The refinery runs on a diet of virtually solely Canadian crude.
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