The Co-op Refinery Complex reduces production
April 16, 2020
The Co-op Refinery Complex (CRC) has been running safely and efficiently at approximately 110,000 to 120,000 barrels per day (BPD) over the last three months.
Today, the CRC announced it has reduced production to 90,000 BPD. This reduction in capacity is in response to market conditions around low oil prices and reduced demand for gasoline as a result of self-isolation measures. Further reductions could be required, but that will be determined by consumer demand.
"While we're turning down the refinery's daily production, we want customers to know that we have planned for this. Over the past few months, we have taken steps to maximize the utilization of our storage capacity and supply chain network throughout Western Canada. This will ensure the market has the product in place to meet demand," said Gil Le Dressay, Vice-President of Refinery Operations. "It's important our agricultural producers know that we plan for their seeding and harvest needs every year and that their product is in place and ready for them this spring."
All consumers can rest assured that fuel inventories are full and ready to meet marketplace demands. If demand for gas and diesel increases, the CRC will reassess and increase production accordingly. However, current projections for transportation fuels are indicating a further reduction in production may be required.
Additionally, the CRC typically reduces production in April to conduct its annual Turnaround. The majority of the Turnaround work planned for 2020 will likely be moved to 2021 and any Turnaround work conducted in 2020 will be done when it is deemed safe to do so.
"While we typically reduce production in April for Turnaround, we see this specific reduction plan lasting longer. It could conceivably be months before we return to our typical production levels," said Le Dressay. "Regardless of our production levels, our focus is, and will continue to be, on the safe operation of the refinery. This will ensure our critical infrastructure is available to support the province and protect our people during this challenging time.