09 November 2012 17:36 [Source: ICIS news]
HOSUTON (ICIS)--Extensive damage to Phillips 66’s Bayway refinery in New Jersey could prolong the east-coast gasoline shortage, an analyst said on Friday.
Damage sustained as a result of Hurricane Sandy at the 238,000 bbl/day refinery in Linden, New Jersey, was more widespread than the company had initially discussed, analyst Gregg Laskoski with GasBuddy.com said.
GasBuddy.com reported that Rich Johnson, a spokesman for Phillips 66, said the refinery took in 12 feet (4 metres) of salt water, which damaged critical equipment and hampered the facility’s ability to pump gasoline into pipelines that are accessed by tanker trucks.
Tanker trucks now have to fill up with wholesale gasoline at terminals in the Philadelphia, Pennsylvania, area, which is delaying shipments to retail gasoline stations in New York and New Jersey, Laskoski said.
Refinery utilisation on the east coast fell by 22.5 percentage points to a rate of 58.5% for the week ended 2 November, according to the US Energy Information Administration (EIA).
According to Laskoski, the Bayway refinery is the most productive refinery in the tri-state region. On the east coast, it is second in size only to the Philadelphia Energy Solutions refinery, which has a production capacity of 335,000 bbl/day.
Phillips 66 has not said how much of the Bayway refinery’s gasoline delivery capacity has been cut.
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