October 26, 2022 [Reuters] – Valero Energy Corp <VLO.N> said on Tuesday it expects high demand amid tight supply for motor fuels and plans to operate its 14 refineries up to 95% of combined total production capacity of 3.2 million barrels per day (bpd) in the fourth quarter.
The second largest U.S. crude oil refiner said it plans to operate its seven U.S. Gulf Coast refineries up to 95%, or 1.78 million bpd, of their combined total throughput in the fourth quarter.
Valero’s refineries ran at 95%, or 3 million bpd, of combined total capacity in the third quarter.
“Refining margins remain supported by strong product demand, low product inventories and continued energy cost advantages for U.S. refineries compared to global competitors,” Valero Chief Executive Joe Gorder said during a Tuesday morning conference call with Wall Street analysts to discuss third-quarter results.
Gorder said he was among energy executives who met recently with U.S. Energy Secretary Jennifer Granholm at the White House.
Gorder said Granholm asked about prospects to restart 1 million bpd of refining capacity that has been permanently closed since 2019.
“I think the general sentiment was that wasn’t going to happen,” Gorder said.
Gorder also said the company has no plans to buy additional refineries.
“We’re not going to jump into the market for any kind of significant transaction,” he said.
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Valero’s two refineries in California are scheduled to operate up to 89% of their combined capacity, or 270,000 bpd. The company is finishing a planned overhaul at its 145,000 bpd San Francisco-area refinery in Benicia, California.
Valero plans to run three mid-continent refineries up to 99% of combined capacity, or 480,000 bpd.
The company’s two north Atlantic refineries are expected to produce up to 91%, or 460,000 bpd, of combined throughput in the fourth quarter.
Reporting by Erwin Seba
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