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RE: Update Motiva Pt Arthur expansion delayed by poor market

Home Forums Coking News: DCU, Upgrader 1.Coker (registered users only) Update Motiva Pt Arthur expansion delayed by poor market RE: Update Motiva Pt Arthur expansion delayed by poor market

#6191

Charles Randall
Participant

This seems like a stupid move to me – delaying an expansion completion nearly 2 years away based on current poor economics?? Do these Refinery strategist have some sort leming pills that they add to koolaid so they can follow the herd? Since Valero has canceled most of their project at Pt Arthur and Total always had longer completion time (4Q 2011/1Q 2012)for their project – this was chance for Motiva to get position and earnings advantage in the market.
 
Since Motiva’s equipment is already purchased (note both Motiva & Total coke drums already at plants) there is only a smaller savings on labor available, plus if the economy is near a bottom and expected to start recover in 2010 at latest; it sets up potential for Motiva to miss the best of recovery demand market by not being onstream for it just like its two Pt Arthur sister companies.  Also it would be shoving more work into a time frame that would again have compete with other “delayed” projects for materials & labor??
 
Making long term strategy decision based on short term/current market conditions – is same as not having a strategy in my viewpoint. 
Regards

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