Petro Star Inc. has reopened a small refinery in Valdez after reconstruction following a fire last Dec. 18, the company announced Nov. 2.
The plant is now operating at its design capacity, processing 60,000 barrels per day of crude oil and manufacturing about 16,000 barrels a day of commercial and military jet fuel, marine, off-road diesel and home heating fuel, said Doug Chapados, president of Petro Star.
Fuel distributors are happy to have the Petro Star plant back in operation.
"We're very pleased to have another supply source," said Dorine Tessier, director of marketing and sales for Crowley Petroleum Distribution, a major Alaska fuel distributor.
Chapados also said Petro Star has started construction on a distillate hydrotreater and associated process units to manufacture ultra-low sulfur diesel at the Valdez refinery.
The plant now makes high-sulfur diesel and home heating oil, but the additional facilities will allow it to compete in the Alaska market for transportation fuels where use of ultra-low sulfur diesel is required by U.S. Environmental Protection Agency rules.
Now the only source of ultra-low sulfur diesel in Alaska is the Tesoro Alaska refinery near Kenai. Petro Star will begin making the diesel in late 2010, the company said.
Chapados gave credit to Petro Star's employees and contractors for a successful rebuilding of the damaged plant.
"Reconstruction of the Valdez refinery is complete thanks to the hard work of our employees, insurers, suppliers and contractors," Chapados said in a written statement.
Startup of the refinery also allows a restart of a cogeneration facility that supplies power from the refinery to Copper Valley Electric Association, the regional electric utility, Chapados said.
