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Citgo Illinois Refinery Shut Down After Fireplace, Cause Of Blaze Unknown

LEMONT, In poor health. Oct 24 (Reuters) – Citgo Petroleum Corp effectively shut down its refinery near Chicago after a fire at its most important crude unit, saying it didn’t know when operations might resume.

Benchmark gasoline futures spiked 1.5 percent after news of the Wednesday evening fire at the 174,500 barrel per day (bpd) refinery in Lemont, Illinois. Citgo said it shut down the crude distillation unit, the workhorse of any refinery that processes crude oil into feedstock for different models inside the plant.

“At the moment we shouldn’t have a schedule on when the crude unit will once more be operational,” Citgo stated in petroleum equipment service an announcement. “The refinery operations have been considerably decreased, however we do have some downstream models still in operation.”

A supply accustomed to the refinery’s operations earlier advised Reuters that the plant was “just about shut down,” and with out the crude unit Citgo is more likely to quickly run out of secondary feedstock needed to run the secondary items. Trade group Genscape said two other main items had been already shut.

The supply stated the extent of the harm to the crude unit was not known. The unit was last shut for maintenance in spring 2012, in line with IIR Vitality. The refinery runs mostly heavy Canadian crude, government data show.

Native emergency fire officials stated the refinery’s internal hearth staff of over a dozen people dealt with many of the activity and managed to convey the hearth under management within three hours. One other 50 to 60 outside firefighters assisted.

“The hearth wasn’t as large because it might have been,” Lemont Fire Chief George Rimbo stated. “We were able to regulate it in a short time.”

They confirmed that there have been no injuries or rescues. They didn’t know the reason for the hearth or the extent of the damage.

Steam was seen coming from the stacks of some items on the refinery on Thursday, consistent with continued operation of the downstream items. There was no scent of burning and no seen emergency autos. Vending trucks came and went.

chemical tower manufacturing installationNative tv confirmed nighttime photographs of dark smoke emerging from the refinery, 30 miles southwest of Chicago, however no flames. The native ABC Tv station petroleum refining course notes quoted an unnamed refinery worker as saying a crew had been working on a valve when a crude oil leak caught fire.

“I know there was too much of labor being carried out on the refinery, something sparked, which caused 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 prices, which had closed close to their lowest since 2011 on Wednesday, jumped on Thursday, rising 1.5 percent to $2.5896 a gallon on the new York Mercantile Alternate (NYMEX).

Chicago CBOB gasoline differentials over the NYMEX contract additionally jumped 10 cents a gallon on information of the fire. The refinery has the capacity to produce four million gallons per day (ninety five,000 bpd) of gasoline, in line with its website.

Units which are downstream of the primary crude distillation unit (CDU) want to make use of feedstock that’s on hand within the refinery petroleum refining course notes or in storage tanks. Without the CDU, the saved inventories will run out and the refinery will either cease operations altogether or can select 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 production by at the very least 50 percent.

Though the refinery shouldn’t be the most important in the region, wholesale Chicago gasoline prices are spiking, said Patrick DeHaan, senior petroleum analyst at GasBuddy, a website that screens gasoline prices across the nation.

“It wouldn’t surprise me if Chicago rallied for a number of days. We’d like to listen to from Citgo the extent of injury – that can affect how lengthy costs will rally,” DeHaan said.

But, he mentioned, drivers might not really feel a significant impact within the near time period as a result of Chicago gasoline prices have been tumbling previously week, with inventories on the rise and no serious refinery issues till now.

Chicago CBOB gasoline differentials were indicated 17.00/12.00 cents under November RBOB gasoline futures, whereas ultra-low sulfur diesel rose 4.50 cents a gallon to 5.00/three.00 cents below November heating oil futures, traders said.

Within the neighboring Group Three market, protecting some Midwestern states, gasoline differentials rose four.50 cents to 20.50/19.50 cents beneath the RBOB futures and ULSD rose 2.50 cents to six.50/5.50 cents under 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 may additionally contribute to a stoop in cash crude markets as a result of weak demand from refiners that shut for routine upkeep within the autumn. One money crude trader mentioned it was too quickly to tell what influence the fire can have. The refinery runs on a food plan of virtually completely Canadian crude.