Tampa:
Genscape reported a slow increase in activity at Midwest refineries impacted by the previous week’s extreme cold weather.
A “mild” uptick in activity was reported on a 75,500 crude distillation unit (CDU) and 16,200 barrel/d fluidic catalytic cracking unit (FCC) at HollyFrontier’s Tulsa East refinery. The CDU was reportedly shut on Feb. 16. Increased activity was also noted from the CVR plant in Wynnewood, Okla., including a slow operational ramp-up observed from a sulfur recovery unit.
First-quarter Tampa molten sulfur contracts were valued at $96/lt CFR, a $27/lt rise from $69/lt CFR in the prior period.
U.S. refining capacity plummeted for the week ending Feb. 19, the U.S. Energy Information Administration (EIA) reported, as refineries in the Gulf and Midwest grappled with fallout from the extreme cold snap.
Refiners operated at 68.6 percent of capacity for the period, a 14.5-point decline from the previous week’s 83.1 percent rate. The rate badly lagged both the year-ago 87.9 percent and the 83.0 percent five-year average.
Daily crude inputs were also down sharply at an average 12.230 million barrels/d, falling 2.589 million barrels/d from the previous week’s 14.819 million barrels/d rate.
U.S. Gulf:
A restart of Texas refineries shuttered during the previous week’s arctic blast will likely require weeks due to damage sustained in the freeze, sources reported.
Bloomberg reported extensive damage uncovered at a number of Texas’ largest facilities, including ExxonMobil Corp.’s 584,000 barrel/d Baytown and 369,000 barrel/d Beaumont refineries, the 585,000 barrel/d Marathon Galveston Bay plant in Texas City, and Total’s 225,000 barrel/d facility in Port Arthur.
The difficulties included ongoing power and water outages, burst and blocked pipes, leaks, and machinery and equipment damaged in the course of the freeze. The cold knocked out nearly 25 percent of gross nationwide refining capacity, according to Reuters.
Motiva Ent. was in the process of repairing damaged pipes at its 607,000 barrel/d Port Arthur plant during the week, while LyondellBasell Ind. was noted repairing leaks at the company’s 268,000 barrel/d Houston refinery. Permission from the Electric Reliability Council of Texas to restart the facility’s electricity-powered motors was also pending on Feb. 21.
Exxon began restart efforts at Baytown on Feb. 22 after restoring electric power and limited water supply, Reuters reported, while Genscape noted increasing activity from a 119,000 barrel/d CDU and 47,000 barrel/d vacuum distillation unit (VDU) at the company’s Beaumont plant.
Marathon’s Galveston Bay refinery on Feb. 23 was reported increasing activity on a 280,000 barrel/d CDU, 128,000 barrel/d VDU, and 145,000 barrel/d FCC. The activity did not constitute a restart, however, as all monitored units have remained below operational levels since shutting down on Feb. 15.
Valero restarted a 150,000 barrel/d CDU and 48,000 barrel/d VDU at its Port Arthur facility, while increased activity was observed from multiple other units on Feb. 24-25. A 54,500 barrel/d FCC and 29,500 barrel/d hydrotreater were restarted at the company’s McKee, Texas, refinery on Feb. 22.
Increased activity was also reported from numerous units at Valero’s East and West Corpus Christi facilities, while Genscape described new activity from a sulfur unit, 65,000 barrel/d FCC, 95,000 barrel/d CDU, and 38,000 barrel/d VDU at the Valero plant in Houston.
Valero also restarted two sulfur recovery units, a 128,000 barrel/d CDU, a 50,000 barrel/d VDU, and a 32,000 barrel/d catalytic reformer in Meraux, La., on Feb. 21. A 55,000 barrel/d hydrocracker that restarted early on Feb. 22 was unexpectedly shut down later the same day. Genscape on Feb. 25 reported an additional attempt to restart the unit.
Multiple unit restarts were observed from the Marathon and Flint Hills refineries in El Paso, Texas, on Feb. 21-25. Genscape on Feb. 25 described increased activity from multiple units at the Phillips 66 refinery in Lake Charles, La., including a 125,000 barrel/d CDU; an 83,000 barrel/d CDU; a 53,100 barrel/d VDU; a 34,000 barrel/d catalytic reformer; and a 12,000 barrel/d catalytic reformer.
Price ideas on the Gulf export sulfur market were heard in a general $150-$160/mt FOB range, firming from $135-$150/mt FOB in the prior report.
Brazil:
Most-recent Brazil imports were heard moving to $180-$185/mt CFR, up from $170-$180/mt CFR posted previously.
Vancouver:
Sources reported Vancouver spot in the $155-$161/mt FOB range, climbing from the week-ago $140-$149/mt FOB.
Alberta:
Genscape on Feb. 23 reported the restart of a 60,100 barrel/d CDU at the Suncor refinery in Edmonton. The unit was reported shutting down on Feb. 21. All of the plant’s other monitored units remained online on Feb. 23.
Alberta sulfur netbacks were described firming to (-)$31-$91/mt FOB based on rising values at Vancouver. The market was previously reported in the (-)$31-(-)$79/mt FOB range.
West Coast:
Market watchers noted West Coast solid sulfur following Vancouver higher to the $155-$161/mt FOB range, up from $140-$149/mt FOB at last report. Molten sulfur contracts were valued at $70-$77/lt FOB for first-quarter loading.
China:
Sources put China price ideas at a general $185-$195/mt CFR, rising from $173-$178/mt CFR previously. Players predicted the next round of business to land in the $190-$200/mt CFR range.
ADNOC:
February ADNOC offers were noted at $128/mt FOB Ruwais, rising $26/mt from $102/mt FOB in January.
Qatar:
Prills loading from Qatar were offered at $125/mt FOB Ras Laffan for February, a $24/mt increase from $101/mt FOB in the prior month.