Phillips 66 to begin repairs on two units at shut Louisiana refinery

Phillips 66 plans to begin repairs on a catalytic reformer and a hydrotreater next week at its storm-damaged, shut 255,600-bpd Alliance, Louisiana refinery, said people familiar with the company’s plans.

Repairs are set to begin in January on the 250,000-bpd crude distillation unit (CDU) and 120,000-bpd gasoline-producing fluidic catalytic cracking unit (FCCU), the people said.

Phillips 66 spokesperson Bernardo Fallas declined to comment on Wednesday.

In addition to the upcoming repair work on the 33,000-bpd reformer and 70,000-bpd diesel hydrotreater, repairs are underway to the heavily damaged electrical system so that most units can begin receiving power soon, the sources said.

Phillips 66 shut Alliance on Aug. 28, one day before Hurricane Ida roared ashore causing heavy rain that flooded the area, leading to a flood wall to be breached at the refinery.

Repairs to the CDU and FCCU will include electrical and mechanical systems on the units, the sources said.

Phillips 66 Chief Executive Greg Garland said on Monday the company continues to evaluate all options for the refinery including a sale or closure.

“It is too soon to make that call as to (whether it operates as) a refinery again or in some other capacity, either for us or somebody else,” Garland said.

Motiva Enterprises, the U.S. downstream and marketing arm of Saudi Aramco, and U.S. refiner Valero Energy Corp have both looked at the refinery in recent weeks, the sources said.

Valero is not likely to buy a new refinery to add to the 14 it operates, company Chief Executive Joe Gorder said on Oct. 21.

Saudi Aramco has been focused on expansion in petrochemicals in the United States in recent years, backing away from earlier plans to add U.S. refining capacity.

Spokespeople for Valero and Motiva did not reply to requests for comment.

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