US Phillips 66 to refine only non-Brent crude in coming years: CEO

30 October 2013 20:50  [Source: ICIS news]

HOUSTON (ICIS)--Phillips 66 plans to be refining only “advantaged” crude oil at its US refineries relatively soon, the refiner’s CEO said on Wednesday.

“Advantaged” crudes – those sold at lower prices than to Brent crude, such as North American shale oil, West Texas Intermediate (WTI) and heavy oils from Canada – make up two-thirds of the crude slate refined by Phillips 66 so far this year, the company said during a Q3 earnings conference call. That is up from 52% of the crude slate in 2011.

“I think we do get the 100% of advantaged crudes over the next couple of years,” said CEO Greg Garland.

Logistics plans for rail and pipeline shipments of non-Brent crude have been drawn up to get more of it to the western and eastern US coasts so it can be refined, Garland said.

Despite lukewarm gasoline demand in the US, Phillips 66 plans to run its coastal refineries at high utilisation rates to make fuel for export, he said.

“We have seven coastal refineries in the US, we currently have 340,000 barrels/day of export capability, and we plan on growing this to 500,000 barrels/day over the next several years,” Garland said.

In Q3 2013, Phillips 66 exported 190,000 bbl/day, the company’s fourth consecutive quarterly increase in exports, the CEO said.

By: Jeremy Pafford
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