Phillips 66 has announced plans to shut down the oil refinery operations at its Rodeo facility in California in February, as it prepares for the start of renewable fuel production by the end of the first quarter. This transition aligns with the company’s commitment to sustainable energy solutions.
According to Kevin Mitchell, Chief Financial Officer at Phillips 66, the facility has operated as a crude oil refinery up until January. However, preparations are underway to begin renewable fuel production, leading to the decision to cease crude operations in February. Mitchell also revealed that the company has already shut down a crude unit at Rodeo during Q4.
Rich Harbison, Executive Vice President of Refining, explained that the shutdown of crude operations in February will facilitate the integration of common utilities for one of its hydrocrackers, currently undergoing conversion. Harbison anticipates the hydrocracker to be operational by March, with the facility swiftly ramping up to about 50% of its nameplate capacity.
Harbison further disclosed that in April, the completion of the PTU (pretreatment unit) and ongoing conversion of the second reactor hydrocracker system is expected. The commissioning process will then begin and extend into May. Harbison is optimistic that Rodeo will reach full operational rates by the end of Q2.
Phillips 66 anticipates an initial production capacity of over 50,000 b/d of renewable diesel at the Rodeo facility. This strategic move is part of the company’s broader initiative announced in 2020 to convert its Rodeo oil refinery into a state-of-the-art renewable fuels production facility.
Rest assured, Phillips 66 remains committed to its vision of sustainable energy and a greener future.
For more information about Phillips 66’s transition to renewable fuel production, visit www.phillips66.com.
Phillips 66 to Operate Renewable Diesel Plant in Rodeo
According to a report by OPIS, Phillips 66 is set to begin operating its renewable diesel plant in Rodeo after successfully clearing a court-ordered review of environmental impacts. This review had previously prevented the company from running the facility.
Asset Sales and Future Plans
When asked about potential asset sales, Phillips 66 stated that there are currently several ongoing processes that they cannot comment on. More details regarding this matter will be provided during the company’s Q1 earnings conference call in April.
Mitchell, a spokesperson for Phillips 66, mentioned that the company is actively engaged in discussions. He further stated, “If we can capture more value from someone else owning the assets, then we’ll do that. Having said that, we are in some active discussions as we speak.”
Non-Core Asset Sales
Phillips 66 had initially announced plans to sell non-core assets with the aim of raising $3 billion. Industry insiders revealed that the company may consider offering its joint-venture interests in the Wood River, Illinois, and Borger, Texas, refineries. Currently, these refineries are co-owned by Phillips 66 and Canada’s Cenovus Energy.
Expansive Operations
With a total of 10 refineries in the United States and two more in Europe, Phillips 66’s operations extend beyond refining. The company also operates in the chemicals, midstream, marketing, fuels and lubricants, and specialties businesses.
Edit by Michael Kelly
