Chevron Phillips May Flare at Port Arthur as Valero Shuts Units

Chevron Phillips Chemical Co. may flare gas at its Port Arthur site in Texas because its customer Valero Energy Corp., which uses the fuel, will shut units for maintenance, according to a filing with state regulators.

“Valero is planning to shut down all but 3 or 4 of its operating units” starting today, according to the filing with the Texas Commission on Environmental Quality. The filing didn’t say which plants would be idled.

Chevron Phillips’s ethylene unit produces feedstock for the Valero plant, according to the filing. Chevron has to flare this raw material as no storage is available at both sites, the filing showed.

Valero’s Port Arthur refinery can process 310,000 barrels of crude oil a day, according to data compiled by Bloomberg.

To contact the reporter on this story: Nidaa Bakhsh in London at nbakhsh@bloomberg.net

To contact the editor responsible for this story: Stephen Voss at sev@bloomberg.net

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