Tampa:
Genscape reported increased activity at a number of Midwest refineries affected by the region’s recent battle with arctic temperatures. Restarts and operational ramp-ups were reported at the CVR refinery in Wynnewood, Okla., the Valero plant in Ardmore, Okla., and CVR’s facility in Coffeyville, Kan.
Phillips 66 restarted two fluidic cracking units (FCCUs) at Ponca City, Okla., although the plant’s 89,000 barrel/d crude distillation unit (CDU) reportedly remained below normal operational levels. Increased activity was reported from a number of units at the Valero refinery in Memphis, Tenn., while BP was noted shutting down a 100,000 barrel/d hydrotreater at its Whiting, Ind., plant.
Tampa molten sulfur contracts were priced at $96/lt CFR for delivery in the first quarter. Firming prices in a number of key international markets were expected to drive Tampa agreements higher in the second quarter. The market was reported at $69/lt CFR in fourth-quarter 2020, a $27/lt difference.
Refinery operating capacity in the U.S. pushed lower for the week, reflecting the ongoing plight of Gulf and Midwest refineries impacted by the mid-February polar vortex.
The U.S. Energy Information Administration (EIA) reported utilization at 56.0 percent for the week ending Feb. 26, a 12.6-point fall from the prior week’s 68.6 percent rate, and well below the year-ago 86.9 percent and the 80.8 percent five-year average.
Crude inputs sank below the 10 million barrel/d mark for the week, notching an average 9.903 million barrels/d, down 2.327 million barrels/d from the prior week’s 12.230 million barrels/d. The weekly rate was believed to be the lowest since the EIA began releasing weekly records in 1982.
U.S. Gulf:
Texas refineries impacted by the February deep freeze continued to inch toward a return to normal operation during the week, sources reported. Most affected refineries on Texas’ Gulf Coast were in the process of restarting, Platts reported, with the majority projected to return to production by mid-March.
Motiva Ent. restarted the largest crude distillation unit (CDU) at its 607,000 barrel/d Port Arthur, Texas, facility on Feb. 26, Genscape reported. The 345,000 barrel/d VPS-5 CDU was restarted in tandem with a 110,000 barrel/d coking unit, the 105,000 barrel/d HCU-2 hydrocracker, and two hydrotreaters, responsible for stripping sulfur from feedstocks.
ExxonMobil Corp. on Feb. 27 restarted the 265,000 barrel/d Crude B CDU, 119,000 barrel/d Crude A CDU, and two sulfur recovery units at the company’s 369,000 barrel/d Beaumont, Texas, plant. A 120,000 barrel/d FCC and 65,000 barrel/d hydrocracker were noted ramping up early in the week.
Increased activity was also observed on March 2 at Exxon’s 155,000 barrel/d Pipestill 7 CDU in Baytown, Texas, Genscape reported.
Valero restarted the 268,000 barrel/d AVU-146 CDU at its 335,000 barrel/d plant in Port Arthur, Texas, among other units. The company’s Houston refinery successfully began restarting units on Feb. 26 following a ramp-up on Feb. 21, while units were successfully brought online at Valero’s Texas City and Corpus Christi East and West plants during the week.
Genscape noted “gradual” activity increases at the Marathon refinery in Texas City, while efforts to restart the 280,000 barrel/d CDU, 128,000 barrel/d vacuum distillation unit (VDU), and 145,000 barrel/d FCC) at the company’s Galveston Bay facility were temporarily aborted on March 1.
Unit restarts and ramp-ups were noted at the Phillips 66 plant in Sweeny, Texas, while the Delek facility in Big Springs, Texas, saw numerous unit restarts starting on Feb. 26.
Citgo successfully restarted a 174,000 barrel/d CDU and 85,000 barrel/d VDU at Corpus Christi on March 1, while ongoing March 2 ramp-ups observed from a 69,000 barrel/d FCC and sulfur recovery unit failed to reach operation levels during the week. Flint Hills restarted a 96,000 barrel/d FCC at the company’s Corpus Christi West plant during the week.
Despite ramp-ups observed from a 149,000 barrel/d CDU, 96,000 barrel/d VDU, and 97,000 barrel/d FCC at the LyondellBasell Ind. refinery in Houston, Genscape on March 2 reported all monitored units remaining below operations levels. The plant’s 140,000 barrel/d CDU 536 and an associated 96,000 barrel/d VDU have remained on a planned turnaround since Feb. 1.
In Louisiana, multiple unit restarts were observed on Feb. 27 at the Phillips 66 facility in Lake Charles, including a 65,000 barrel/d CDU, 53,100 barrel/d VDU, and 34,000 barrel/d catalytic reformer.
Rising values at Brazil were noted lifting price ideas in the Gulf, with most sources calling the market at a minimum $170-$180/mt FOB should new spot business conclude today. Ideas were previously reported at $150-$160/mt FOB.
Brazil:
Sources quoted the Brazil import market at $218/mt CFR in recent trading, lifting from $180-$185/mt CFR in the previous week.
Vancouver:
Players called Vancouver prill ideas in the $170-$175/mt FOB range, firming from $155-$161/mt FOB reported previously. The red-hot China import market was projected to move Vancouver higher in the next round of business, where sellers were reported testing values in the $180s/mt FOB.
Alberta:
Sulfur produced in Alberta carried netbacks in a wide (-)$31-$105/mt FOB range, sources said. Expected increases at Vancouver were projected to lift prices in the next round of business.
West Coast:
Price ideas on West Coast solid sulfur market moved up to $170-$175/mt FOB. First-quarter molten contracts were reported in the $70-$77/lt FOB range.
China:
Sources noted China import spot prices firming to the $200-$210/mt CFR range for the week, rising from $185-$195/mt CFR at last report.
ADNOC:
ADNOC offers for March were posted at $183/mt FOB Ruwais, sources said, a $55/mt increase from $128/mt FOB in February.
Qatar:
Muntajat solid sulfur pricing was noted even with ADNOC at $183/mt FOB Ras Laffan, up $58/mt FOB from the month-ago $125/mt FOB.