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Valero to shut Aruba refinery by end of March

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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