What an asinine idea. Herman & Company botched the sale and now this idea just when refining is heating up again. Maybe trying to shake down the state and local officials for tax breaks/incentives??
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Most of the management team that ran Alliance into the ditch get rewarded with jobs, some promotions, while others have to go find jobs. They should’ve been kicked to the curb like everyone else.
Sad situation. Bob Herman goes to the refinery a month or so before the terminal announcement and tells the employees that the refinery will be running again in the spring either by P66 or a new owner. Comes back a few weeks later and lays everyone off. Announces refinery will become a terminal without any concrete plan or cost estimate on getting it done. Midstream caught off guard and doesn’t even make first visit to refinery until a week after announcement. Current employees told to prepare to leave on January 7, but you may be extended in 2 week intervals for as long as the company wants. Total sh-t show.
Storm damage ki---d the chance of sale. But long one of the weakest in the portfolio so not surprising. With the coming of many more refinery shutdowns in next 10-15 years. This is jon the front of that demand curve decline. Sad to see it happen for all the great people I’ve met at Alliance but really inevitable. Will be a good terminal location, hopefully keep some jobs. Not much of a consolation I know.
5 management teams, 20 years since Phillips acquired the refinery, and none managed to make the refinery profitable?
Many improvement projects were undermined by poor project management leading to project cancellations. A $50 million Coker heater that was fabricated, delivered, but never installed. Ultimately was sold for scrap metal. A recently installed sulfur plant improvement would not operate as the design intended. A third export dock was permitted, but cancelled; if built, would certainly enhance the proposed terminal operation. A hydrogen pipeline was recently completed, but will never be used; too many years of fighting HQ to get the project approved
Alliance Refinery was originally designed as a tightly integrated process. Gulf performed turnarounds on the entire facility every 4-5 years. This allowed inter-unit infrastructure equipment to be maintained routinely. BP began the decoupled turnarounds, only shutting down the entire facility much less frequently (every 10-15 years). This led to increased equipment unreliability, much more unplanned outages, more maintenance. The ever increasing pressure to shorten turnaround durations, minimize work scope resulted in some equipment repairs not being done, further feeding the unreliability spiral.
Exactly- what could be a profitable refinery if run properly is turned in to a a tank terminal loading an occasional ship.