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Argus Media: P66 could exit San Francisco fuel oil bunker market

21 Aug 2020

Stefka Wechsler of the global energy and commodity price reporting agency Argus Media on Wednesday (19 August) published a report on US independent refiner Phillips 66’s decision to remodel its refining complex in San Francisco to produce renewable diesel as bunker fuel: 

Phillips 66 could stop supplying residual fuel oil for bunkering in San Francisco, California, if it converts its refining complex there into a renewable fuels production site as planned.

The US independent refiner and Chevron are the only two residual fuel oil suppliers in the region. But Phillips 66 plans to halt crude processing at its 120,000 b/d San Francisco refinery by the end of 2023 to shift to renewable diesel, naphtha and jet fuel production in early 2024, pending regulatory approval.

The conversion will halt production of residual fuel oil.

The San Francisco fuel oil supplier gap could be filled by companies such as Minerva, Peninsula and Glencore, which supply fuel oil for bunkering at the competing port of Los Angeles in southern California.

Phillips 66’s renewable diesel plans would keep it in the San Francisco marine distillates market. Unlike biofuels such as ethanol and biodiesel, renewable diesel is chemically identical to petroleum diesel and it “works in any traditional diesel engine”, the company said.

The other two marine distillates suppliers in San Francisco are Chevron and Maxum Petroleum.


Photo credit and source:
Argus Media
Published: 21 August, 2020

 

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