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July 3, 2007 at 5:21 pm #3981
July 2, 2007 NEW YORK (Reuters) – Coffeyville Resources shut its 108,000 barrel-per-day refinery in Kansas due to flooding on Friday, a state official from the Kansas Division of Emergency Management said Monday. The refinery was shut down on Friday due to flooding,” said Danny Hay, an operation officer at KDEM. The flooding caused a crude oil spill of more than 1,000 barrels from the refinery’s oil storage tanks.
Company officials were not available for comment early Monday.
“The oil spill is ongoing. It will not stop until the water levels come down,” Hay said. “The oil started spilling into the river because the high water levels started to push out the oil from the (submerged) gravity tanks.”
No pipeline rupture was reported, he said. In early Monday trade, traders expected the refinery outage to support cash price differentials of gasoline and diesel in the Midwest and Gulf Coast markets.
“We should see the midcontinent pulling gasoline barrels from the Gulf Coast, and that should help the cash basis,” a Gulf Coast trader said. “We should see a generally tightening market.”
A second trader played down the potential bullish impact.
“The arbitrage window for barrels to flow to the Midwest has been opened for about a week now,” he said. “The impact of the refinery outage on the Gulf Coast market is limited. “The Gulf Coast cash gasoline differentials could firm up later Monday due to short-covering activities on Colonial pipeline scheduling, they said.
Coffeyville Resources is owned by CVR Energy Inc., a unit of Goldman Sachs and the Kelso Funds. CVR is expected to launch its initial public offering of stock on the New York Stock Exchange later this year.
According to Coffeyville’s update on the oil spill, the company shut down its refinery and nitrogen fertilizer plant in Coffeyville, Kansas, due to flooding from the Verdigris River.
It declined to estimate the duration of the refinery’s downtime.
Coffeyville also confirmed the oil spill during the early hours of the flood, and subsequent record levels of flood waters swept the oil from containment area within the refinery. The company also reported a small ammonia release to the atmosphere and believed that posed no threat to the community.
July 3, 2007 at 5:23 pm #7351
Coffeyville Kansas refinery under 4-6 feet of water
July 3, 2007 NEW YORK (Reuters) – Coffeyville Resources’ oil refinery in Kansas was submerged under four to six feet of water due to flooding, a Montgomery County Emergency Management coordinator said Tuesday.
The 108,00 barrel-per-day refinery was shut Friday, and the flooding also caused a crude oil spill of more than 1,000 barrels from its storage tanks. “The flooded area is condoned off right now,” coordinator Jim Miller said. “It’s too dangerous to go into the refinery compound.”
The damage assessment team may enter the refinery later Tuesday, if the waters continue to recede, Miller said. “The water levels have come down considerably, but the water levels are still above the levees,” he said.
Coffeyville Resources is owned by CVR Energy Inc., a unit of Goldman Sachs and the Kelso Funds. CVR had been expected to launch its initial public offering of stock on the New York Stock Exchange later this year.
Miller added that the oil spill from the storage tanks had stopped after checks on the safety valves at the tanks were made by refinery personnel and Environment Protection Agency officials on Tuesday.
He declined to provide any new estimate on the oil spill. Some gasoline traders on the Gulf Coast expected the refinery to be out of service for months due to water damage to the refinery infrastructure.
The gasoline cash market reacted bullishly on Monday, with the Midwest Group Three gasoline cash differential climbing about 13 cents a gallon.
The U.S. Environmental Protection Agency has brought in a site coordinator from its Gulf Coast region who helped in the clean-up of refineries that were damaged by Hurricane Katrina, said EPA spokeswoman Dianne Whitaker.
The agency is testing water supplies in the region but does not expect to have any test results until later in the week.
July 3, 2007 at 5:26 pm #7350
Aerial view shows oil spill from Coffeyville Resources refinery in the Verdigris River in Coffeyville, Kansas July 2, 2007. Coffeyville Resources’ oil refinery in Kansas was submerged under four to six feet of water due to
The Coffeyville Coking Refinery (formerly Farmland) and not mentioned here it would also include their Petcoke IGCC making Fertilizer. Due all the closing of Fertilizer plants & current high level of imports (result of high Nat Gas prices) this will have impact on fertilizer prices and availability in Midwest which is now key for Ethanol production.
Note Press keeps showing crude & ect contamination in river on TV coverage – so there will likely be some claims laid against Coffeyville afterwards.
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