Chevron eyes permanent shutdown of Pasadena, Texas FCC

https://www.hydrocarbonprocessing.com/news/2021/07/chevron-eyes-permanent-shutdown-of-pasadena-texas-fcc

They bought the old Crown refinery for $350MM in 2019 from Petrobras. Very familiar with the operation and maintenance and have lots of cost cutting horror stories. They paid way too much IMHO.

And now "The FCC was shut on June 1 by a malfunction that knocked the unit out of operation." and “We're leaning towards a hydroskimming focus in that regard,” .

If you understand refineries, the major money-making component of the operation is the FCC. Sounds like the FCC (an old modified Texaco Unit) was severely damaged and its not worth repairing, so with the FCC gone (and also losing cheap feedstock for the Alky), the refinery profitability and value plunges.

I expect this refinery to be sold at a loss or shuttered/converted to a tank farm terminal like Perth Amboy (defer environmental liabilities ). The "hydroskimming" is a good way to cut losses on a bad deal.

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At one time, Chevron was a leader in Refinery Operations.

RIP Bob Flanders and Chuck McCoy.

@nlp This is O&G. We don’t just encourage incompetence; we actively reward it.

I wouldn’t be surprised if the people who made the decision are all promoted, given bonuses, or both.

What a nightmare. Who made the decision to buy this refinery. Find out all those involved and FIRE THEM ALL immediately for incompetence.

@lvp
Might be true in Texas, but in California a major modification required re-permitting the entire facility. This issue was a big discussion point in the 2006 (I think) senate hearings on the price of oil.

Astra paid $42.5 million for this horrible old refinery in 2006 when oil prices were raging.

Correct a New Refinery has not be approved, but as long as one was already there it’s considered expansion. That’s why companies buy junk facilities for the land.

A new refinery has not been approved for decades in the US.

My understanding is the value of this refinery was the land zoned for being a refinery. Chevron was always intending on converting this property, but didn't intend on doing it now.

Thread regarding Chevron Corp. layoffs

Chevron eyes permanent shutdown of Pasadena, Texas FCC

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