Valero Plans to Run Refineries at 92% of Combined Capacity in Q3 2024

U.S. refiner Valero Energy Corp (VLO.N) plans to operate its 14 refineries up to 92% of their combined 3.2 million barrel-per-day (bpd) total throughput capacity in the third quarter of 2024, according to plans announced by Homer Bhullar, vice president of investor relations.

The San Antonio-based company, which is the second largest U.S. refiner, plans for its seven U.S. Gulf Coast refineries to operate between 95% ad 98% of their combined total throughput of 1.8 million bpd, Bhullar said during a conference call on Thursday.

During the second quarter, Valero's refineries ran at 94% of their combined total throughput capacity, Bhullar said.

Greg Bram, vice president of refining services, said the company's third-quarter production projections "considers planned maintenance activity we have planned in the quarter, particularly if you take a look at the North Atlantic region."

Valero's two North Atlantic refineries are based in Quebec and Wales.

Chief Operating Officer Gary Simmons said gasoline demand was similar to 2023.

"I guess the way we're looking at it as we say, year over year, gasoline demand in the U.S. is flat," Simmons said.

"The company has also seen weaker demand for jet fuel," Simmons said.

"If you look at year to date, diesel sales in the daily data would suggest a decline in diesel demand of about 100,000 barrels," he said. "However, you know, a lot of that has been offset to date with the increase in jet demand. So maybe distillate demand is down slightly."

Chief Executive Lane Riggs said the company's joint venture Diamond Green Diesel renewable distillate plant at the 360,000-bpd Port Arthur, Texas refinery remains on schedule to begin production in the fourth quarter of this year.

In addition to diesel fuel, the plant will produce sustainable aviation fuel, Riggs said.

(Reporting by Erwin Seba)