Chevron's Pascaguola VGO Floating Storage Expands
04.01.2016 - NEWS

April 1, 2016 [OPIS] - Chevron's floating storage plans for vacuum gasoil (VGO) at its 360,000-b/d refinery in Pascagoula, Miss., are believed to be gathering pace, with an Aframax tanker now likely to join a Panamax that earlier was fixed for the same purpose.


According to sources, the Aframax tanker Angelica Schulte is anticipated for arrival in Pascagoula in the first week of April, reportedly to load and hold a cargo of high-sulfur VGO (HSVGO) on temporary floating storage. A vessel of this size typically holds 80 kt of cargo, equivalent to some 545,000-550,000 bbl of VGO.

Some sources suggested as of last night that this vessel was on subjects, i.e., in the process of being fixed. Subject to actual confirmation, the Angelica Schulte will join the Panamax tanker Dhonoussa that also is scheduled to hold Pascagoula HSVGO in floating storage in the same time frame.

The Dhonoussa can typically hold VGO cargoes of 50 kt, equivalent to some 340,000-345,000 bbl. Chevron has reportedly already fixed the Dhonoussa for 20-60 days of floating VGO storage at a charter rate of $26,500/day.

In addition, Chevron appears to have provided itself contingency berth space in Pascagoula for further VGO storage, possibly on barges, if needed.

OPIS yesterday reported that the Pascagoula refinery’s ongoing turnaround maintenance includes work on its 80,000-b/d fluid catalytic cracking (FCC) unit. The work has seen Chevron being left holding an excess of HSVGO, which normally would go into the FCC as feedstock.

The game plan, OPIS understands, is for Chevron to hold on to the excess VGO in floating storage for local use later, instead of trying to sell it into the U.S. Gulf Coast spot market.

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