Texas fuel supply limited by P66 refinery unit issue

US independent refiner Phillips 66 is placing gasoline and diesel buyers on allocation in the markets fed by its Borger, Texas, refinery following a hydrotreater going off line.

Phillips 66 told fuel buyers on 5 June that the 149,000 b/d refinery's hydrotreater was down, severely curtailing supply to nearby markets until early July, according to an email from the company seen by Argus.

The refiner is placing customers in the west Texas cities of Amarillo and Lubbock on allocation. Branded fuel purchasers in Lubbock will receive 90pc allocations on gasoline and 75pc on diesel, according to the email, while unbranded customers will also be allocated.

The allocation policy will take effect Wednesday and will likely be in place until early July, Phillips 66 said in the email. Phillips 66 is working to secure backup fuel supplies to stop gap the reduced capacity from Borger, but terms are still being negotiated, according to the email.

Phillips 66 declined to comment on refinery operations.

The refiner was undertaking planned work on its fluid catalytic cracking unit in the second half of May, according to a report filed with the Texas Commission on Environmental Quality.

Hydrotreaters remove impurities such as sulfur from refinery fuel streams.

By Nathan Risser