US Valero to convert Aruba refinery into refined products terminal

03 September 2012 16:42  [Source: ICIS news]

LONDON (ICIS)--Valero announced on Monday that it plans to convert its Aruba refinery into a refined products terminal, following the US company’s suspension of operations at the facility in March this year.

The move will further reduce Valero’s operations in Aruba, and will lead to “considerable” reductions in workforce at the site, the company said. The conversion is expected to be completed before the end of the year.

The reorganised terminal will have deepwater berths, and will be open to third-party storage.

Valero CEO Bill Klesse said the company is in talks with other parties in pursuit of options for the refinery other than a permanent shutdown, and that the facility would be maintained for the time being in a state that would allow for it to be restarted.

He said: "Our discussions with interested parties, including those facilitated by the Government of Aruba, will continue, and if successful may result in the suspension of the workforce reduction.”

Valero’s decision to shut down the plant in March 2012 was the primary cause of a $605m (€478m) asset impairment loss that the company reported in its quarterly results for the first three months of the year.

The 235,000 bbl/day refinery had also been shut down in 2009 for 17 months as a result of low margins.

($1 = €0.79)

By: Tom Brown
+44 208 652 3214

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