Phillips 66 modifies refineries for marine fuel rule

Modifications to hydrotreaters at two Phillips 66 refineries will help reduce high-sulfur fuel oil production by 35,000 b/d across the company's refining system.

The US independent refiner plans to modify units over the next 18 months at its 356,000 b/d joint venture Wood River refinery in Roxana, Illinois, and at its 250,000 b/d Bayway refinery in Linden, New Jersey, according to a presentation made this week.

Modifications would cut high-sulfur fuel oil production ahead of a global change toward lower-sulfur marine fuel. Almost all major global shippers must comply with International Maritime Organization requirements reducing marine fuel emissions to 0.5pc sulfur from 3.5pc sulfur beginning 1 January.

Another project adding storage tanks for greater high-sulfur crude processing flexibility at Phillips 66's 101,000 b/d refinery in Ferndale, Washington, would take advantage of anticipated lower demand for higher-sulfur feedstocks attributed to the rule, the company said.

The company will complete modifications to the Wood River unit in the first quarter of 2020 and to Bayway in the second quarter. Phillips 66 will add the storage tanks to the Ferndale refinery by the end of the year. The company also plans to start up a small, idled crude unit at Wood River next quarter.

All of the projects were part of an overall $120mn of refining investments planned through the first half of 2020.