California may soon have more asphalt production, as Santa Maria Road Materials plans to restart a 9,500 b/d asphalt refinery in Santa Maria.
Work on the restart is expected to be complete in June, according to a permit transfer application filed with the County of Santa Barbara last week.
The project involves the ongoing replacement of all process steam boilers as well as the repair or replacement of process flow piping, vessels, pumps, heat exchangers, tanks, distillation towers and associated heaters, according to the application. The operation of a "truck transportation facility" at the refinery is also included in the plan.
Market participants have noticed on-site work over the past couple of weeks, but many remain skeptical, noting the extensive repairs needed and Santa Barbara's difficult regulatory environment.
The facility was previously owned by Greka Energy and produced paving and emulsified asphalt products as well as light feed stock, naphtha, kerosene and gas oil, according to documents filed with the county.
The Santa Maria refinery ceased operations in 2021 because of fire code violations and was shut down in 2022, according to the California Energy Commission. The refinery was originally built in 1932.
One refinery closes, another opens
The potential restart of the facility comes as US independent Valero plans to idle its 145,000 b/d refinery in Benicia, California, by April, which is expected to boost asphalt trade flows and prices as buyers seek supply from farther afield. Valero began the Benicia refinery shutdown on 31 January.
The pending loss of production has also spurred several other companies to look for ways to fill the supply gap.
Construction firm Teichert is developing a new terminal in West Sacramento, California, after purchasing a former fertilizer facility with rail and waterborne access.
Further south, Marathon Petroleum plans to produce asphalt and construct a truck-loading rack at its 365,000 b/d Los Angeles refinery in Carson, California, according to a project overview released by the company.
Additional market participants continue to investigate expansion opportunities in the state.
