Valero Energy Begins Restart of Memphis Refinery; Updates Operating Guidance for Q3

Valero Energy Corporation

today announced that the company is in the process of restarting units at its Memphis refinery, which was shut down on Aug. 5 due to a fire in a crude distillation unit. The restart will begin with one of the crude distillation units, FCC, and other key units. The other crude distillation unit is expected to be restarted by September. As a result, Valero has revised its operating guidance for the third quarter of 2011 with refinery throughput volumes now estimated in the range of 370,000 to 380,000 barrels per day in the Mid-Continent region, which is down from the original estimate of 420,000 to 430,000 barrels per day. Also, Valero now expects its system-wide refinery operating expenses to be $4.05 per barrel in the third quarter, which is above the original estimate of $3.80 per barrel.