Premcor increases capacity at Port Arthur refinery

Premcor Inc. (St. Louis, MO) announced that it has increased the rated crude oil throughput capacity at its Port Arthur, TX, refinery from 232,000 to 250,000 bpd. This capacity increase is the latest achievement for the company as it works towards completion of an $835 million heavy-oil upgrade project at the refinery that will allow it to process heavy, sour crude oil up to an estimated 80% of its capacity.

Premcor, previously Clark Refining, changed its name on May 10, 2000.

The refinery underwent a 33-day maintenance turnaround in April and early May. Among the work undertaken during the turnaround were significant modifications of the crude unit that will allow the refinery to run at the higher rates. These changes—along with adjustments completed to certain other units—are also a key part of the larger project that will enable the refinery to run the lower-cost crude oil slate once the heavy-oil upgrade project is completed later this year. Premcor may be able to utilize this increased capacity prior to the full project completion depending on market conditions.

"We continue to make tremendous progress towards the completion of our heavy-oil upgrade project and this announcement is a significant milestone in that effort," noted William C. Rusnack, President and CEO of Premcor. "Since the turnaround, we have successfully tested throughput rates up to the new capacity and are excited about the opportunity to take advantage of some of this increased capacity over the next few months."

The project is currently more than 85% complete and is on time and on budget with a targeted mechanical completion in November of this year. The company anticipates significant earnings contribution once the project becomes fully operational in early 2001.

By David Nakamura