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Shuttered US Refineries Since the Global Pandemic

Reuters, June 27, 2022
Reuters

Since the onset of the global pandemic, the United States has lost nearly 1 million barrels per day of oil refining capacity, with more set to be shuttered in the next few years. These are the refiners that have closed or cut capacity:

LYONDELLBASELL - HOUSTON, TEXAS

CAPACITY: 263,776 barrel-per-day (bpd)

Lyondell said in April of 2022 that it would permanently shut the refinery by year-end 2023, as it was unable to find a buyer and did not want to invest to keep the facility open.

The refinery could be converted into a processor of pyrolysis oils, which can be used to make renewable diesel, but that study will take years. Lyondell could permanently close the refinery ahead of the December 2023 deadline if one of several major production units is shut and cannot quickly return to production. 

PHILLIPS 66 - ALLIANCE, BELLE CHASSE, LOUISIANA

CAPACITY: 255,000 bpd

Phillips 66 announced in November 2021 that it would not reopen the Alliance refinery, which was shut in mid-August ahead of Hurricane Ida. The 50-year-old refinery was severely damaged after several feet of water flooded it during the storm.

LIMETREE BAY - ST. CROIX, USVI

CAPACITY: 210,000 bpd

Limetree Bay Energy shut its St. Croix refinery due to financial problems in May 2021 after only operating for a few months, due to operational setbacks. The refinery had already been idle for a decade before restart. The plant was sold to a Jamaican oil storage facility in December 2021. 

SHELL - CONVENT, ST. JAMES, LOUISIANA

CAPACITY: 240,000 bpd

Shell announced in November 2020 it would be shuttering the refinery after attempts to sell the plant between July and October were unsuccessful. The refinery became unprofitable as COVID-19 spread across the United States.

Shell planned to try to divest the refinery as it considers closing facilities it cannot sell, the company told investors.

MARATHON - MARTINEZ, CALIFORNIA AND GALLUP, NEW MEXICO

CAPACITY: 161,000 bpd (Martinez); 27,000 bpd (Gallup)

Marathon Petroleum said in August 2020 that it would permanently close two refineries in Martinez, California, and Gallup, N.M. in response to lower fuels demand, after idling the facilities following COVID-19 outbreaks in the United States.

The company is converting the Martinez refinery to produce 260 million gallons per year of renewable diesel starting in 2023.

PHILLIPS 66 - RODEO, CALIFORNIA

CAPACITY: 120,200 bpd

U.S. refiner Phillips 66 plans to fully convert its Rodeo, California, crude oil refinery into a renewable fuels plant using cooking oil and food wastes beginning in 2024.

HOLLYFRONTIER - CHEYENNE, WYOMING

CAPACITY: 52,000 bpd

HollyFrontier Corp said in June 2020 it would convert its Cheyenne refinery into a renewable diesel plant that would produce 6,000 bpd of renewable diesel. The company ceased refinery operations at Cheyenne the following month, making it the first U.S. refinery to close in 2020.

CALCASIEU REFINING - LAKE CHARLES, LOUISIANA

CAPACITY: 135,500 bpd

Calcasieu Refining shut its Lake Charles plant in early August of 2020, according to the Louisiana Department on Environmental Quality, citing demand loss during the pandemic.


(Reporting by Laura Sanicola; Editing by Nick Zieminski)

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Copyright 2022 Thomson Reuters. Click for restrictions.

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