August 10, 2010 at 2:47 am #2560
Yorktown refinery to be idled; 230 to lose jobs
By STAFF AND WIRE REPORTS | Times-Dispatch
Published: August 06, 2010 YORKTOWN, Va. —
Western Refining Inc. will idle its Yorktown refinery, laying off about 230 workers.
The shutdown decision was prompted by a “poor outlook for East Coast refining margins,” the company said yesterday in its second-quarter earnings statement. The idling of the processing units at the 70,800-barrel-a-day refinery will begin immediately and take roughly six weeks. About 230 of the 260 workers at the refinery will lose their jobs by the end of the shutdown, spokesman Gary Hanson said.
Western will continue to operate the Yorktown products terminal and supply finished products to the East Coast region, the company said. “The company is evaluating all strategic alternatives and if the situation improves would consider restarting refining operations,” the El Paso, Texas-based firm said.
As the shutdown proceeds, Yorktown is expected to continue production.
Gary Dalke, the company’s chief financial officer, said in an earnings conference call that the plant is forecast to run at rates of 65,000 to 70,000 barrels a day, with oil throughput of about 50,000 to 55,000 barrels, before it is idled in mid-September.
The Yorktown plant, originally operated by Amoco, is the only refinery in Virginia. It is located on 570 acres along the river in York County, with access to the Chesapeake Bay. The facility has a refining capacity of 70,000 barrels of crude oil per day.
“Today’s announcement hits home for many families in the Yorktown area,” said U.S. Rep. Robert J. Wittman, R-1st. “This is an unfortunate sign that our economy still struggles, and underlines the country’s need for a comprehensive energy policy,” he said.
“Regulatory uncertainty because of cap and trade certainly plays a role, and unfortunately, today only emphasizes the country’s unhealthy reliance on foreign oil.”
The refinery receives most of its crude and other feedstocks from Canada, the North Sea, South America, and the Far East, according to the company’s website. The facility includes about 5 million barrels of storage capacity for products and connects to the Colonial pipeline. The pipeline is the largest connecting the U.S. Gulf Coast refiners with East Coast markets
August 10, 2010 at 2:48 am #5518
Looks like Yorktown is going to be “idled” which still counts as part of “operable capacity” for US utilization calculations and hopefully pundits will not confuse this in calculating capacity & utilization this time.
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