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Valero to shut Aruba refinery by end of March

03.19.2012  |  HP News

The Texas-based refiner says it will suspend operations at the 235,000 bpd Aruba refinery by the end of the month because weak margins have led to financial losses.

Keywords:

Valero Energy said Monday that due to unfavorable refinery economics and the outlook for continued unfavorable refinery economics, refining operations will be suspended by the end of the month at its 235,000 bpd refinery in Aruba.

The refinery has been operating at reduced rates because of inadequate margins resulting in financial losses.

Over the past two years, Valero has thoroughly evaluated all of its alternatives for the refinery and is now considering the possibility of operating a terminal and storage operation at the site.

For the immediate future, Valero will maintain the refinery in a state that would allow a restart.

"We appreciate the diligent and incredible efforts of Prime Minister Eman and his government in helping Valero find an economic alternative that would allow continued operation of the refinery," said Valero CEO Bill Klesse.

"If it had not been for the efforts of the Prime Minister, the refinery would not have restarted in late 2010 and operated over the past 15 months. Our discussions with interested parties, including those facilitated by the Government of Aruba, will continue."


Cover photo by David Stanley



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Henry
03.27.2012

USA has a 200 year supply of natural gas to replace fuel oil. This plant won't reopen.

Romildo
03.26.2012

The American public is very wstfeaul especially when it comes to their automobiles. I am not for raising prices for the sake of increasing oil company and/or retailer profits but I do believe we could be more conserving but we won't until we are forced to. We love to drive our automobiles especially when the alternative means staying at home and being bored to death. It is so much better to get out and cruise up and down the streets to see who we can see or be seen or to run down to your local Walmart just to have something to do. Conservation should be something on everyones mind but most of us could care less especially when we can use the excuse that if the Chinese don't do it also what is the point. I think we should see prices go up again on fuel just so that people will start to cut back again and not be so wstfeaul but of course that won't happen because the public will get in an uproar over it and businesses to will cry because people won't spend money with them in order to save for possible recessionary situations.

Hou Kaifeng
03.21.2012

The suspending is temporary, I think. With the economic recovery from global and USA market, more oil products are needed. The period will not be long, maybe half of a year.

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