California Gasoline Climbs After Valero Plant Reports Breakdown

California spot gasoline rose against futures after Valero Energy Corp. (VLO) reported a compressor breakdown at the Wilmington refinery near Los Angeles.

The 78,000-barrel-a-day refinery restarted the compressor after the failure yesterday, a filing with federal regulators shows. Valero said in a separate notice to the South Coast Air Quality Management District that the plant may flare gases because of a breakdown.

“There was no material impact to production” at the refinery, Bill Day, a spokesman at Valero’s headquarters in San Antonio, said by e-mail.

California-blend gasoline, or Carbob, in Los Angeles gained for a third day, rising 3.5 cents to a discount of 4 cents a gallon versus gasoline futures traded on the New York Mercantile Exchange at 3:52 p.m. East Coast time, according to data compiled by Bloomberg.

Chevron Corp. (CVX)’s 279,000-barrel-a-day El Segundo refinery is shutting a fluid catalytic cracker around Jan. 14 for 54 days of work and will take down an alkylation unit for 28 days, a person with knowledge of the schedule said Dec. 7.

The plant is also planning a maintenance turnaround on the No. 2 crude unit for August, said the person, who asked not to be identified because the information isn’t public.

Tesoro Corp. (TSO) and BP Plc (BP/) are scheduled to shut units at their refineries in Southern California for work next month, people familiar with operations at the plants said.

Hydrogen Plant

Air Products & Chemicals Inc. (APD) repaired a broken valve over the weekend at a plant in Wilmington that supplies hydrogen to area refineries. The plant was back to normal operations at about 11:45 p.m. local time Dec. 8, Art George, a spokesman at the company’s headquarters in Allentown, Pennsylvania, said by e-mail today.

Refinery customers received hydrogen during the repairs at reduced rates, George said.

Carbob in San Francisco gained 2.5 cents to 15 cents a gallon below futures, the highest level for the fuel in the Bay Area since Dec. 4.

California-grade, or CARB, diesel in Los Angeles and San Francisco were unchanged at discounts of 6.5 cents and 7 cents a gallon versus Nymex heating oil futures, respectively.

Conventional, 84-octane gasoline in Portland, Oregon gained 0.5 cent to 18 cents a gallon below gasoline futures, Low-sulfur diesel in Portland also rose by 0.5 cent to 9 cents a gallon under heating oil futures.

To contact the reporter on this story: Lynn Doan in San Francisco at ldoan6@bloomberg.net

To contact the editor responsible for this story: Dan Stets at dstets@bloomberg.net0

Bloomberg reserves the right to remove comments but is under no obligation to do so, or to explain individual moderation decisions.

Please enable JavaScript to view the comments powered by Disqus.