Refining Community Logo

RE: Tesoro Anacortes crude shift – Creates asphalt shortate & 4 Counties had cut paving

Home Forums Coking News: DCU, Upgrader 1.Coker (registered users only) Tesoro Anacortes crude shift – Creates asphalt shortate & 4 Counties had cut paving RE: Tesoro Anacortes crude shift – Creates asphalt shortate & 4 Counties had cut paving

#6683

Charles Randall
Participant

Here is another news article on Refinery crude slate change impacting state / regional asphalt supplies. The large number of states with few refineries – a great deal of them smaller & less complex types that make asphalt will continue to be a problem for the transportation industry used to cheap over-supplied asphalt. The Washington area could be impacted even more if both COP & Tesoro revive their past coking projects that have been cancled or put on hold.
 
Tesoro’s crude slate at Anacortes had been primarily composed of sweet Canadian by Pipeline, Alaskan crude by US ships and remainder from foreign imports. Tesoro began rolling off existing crude contracts in 1Q2008, moving away from the more expensive Canadian sweet and ANS benchmark crude’s towards more foreign imports. <Similar slate changes happened also at Golden Eagle (new coker project completed) and Hawaii (shift away Premium Asian sweet crude’s).
 
Originally both Tesoro & ConocoPhillips had new coker addition projects for their Anacortes Refineries but were canceled or delayed during 2006 because of cost increase (~doubled) and need to move timing forward on other coker projects (G. Eagle & Borger/Woodriver). Both had planned to use more Canadian Bitumen heavy crude’s with the new Anacortes coking units.
Although Tesoro Anacortes coker project was delayed their were two Sulfur handling projects that did go in 3Q07 and facilitated the use (& flexibility) of more discounted Canadian heavy sour crude.
 
As this article mentions the continued shift in US refineries to more heavy sour crudes (as most available domestic & import sweet crude’s become physically or economically unavailable) will impact all by-product qualities & quantities (asphalt / lube/petcokes/ sulfur, ect).  The most dramatic shift is already occurring at this early juncture with Asphalt, but will soon be followed by anode grade green petcoke, and later heavy fuel oil products.
 
Regards

Refining Community