Marathon Petroleum Flaring Schedule at Los Angeles Refinery
Marathon Petroleum has announced that it will be conducting flaring operations at the Carson section of its 382,000 b/d Los Angeles refinery. The flaring is scheduled to begin on Wednesday morning and continue until Tuesday. This information was disclosed in a filing made by the company with the South Coast Air Quality Management District.
According to the filing, the reason for the flaring is listed as "start-up/shut down". However, the company did not provide further details regarding the nature of this activity.
It should be noted that the Carson refinery had already begun flaring on Thursday due to an "essential operational need". Marathon Petroleum had communicated this to the regulators at that time.
In a related incident, the Wilmington section of Marathon Petroleum's Los Angeles refinery experienced a power outage on Monday, leading to the release of sulfur dioxide and subsequent flaring. The refinery is currently in emergency mode, and an investigation is underway to determine the root cause of this incident.
At the time of publication, Marathon Petroleum had not responded to a request for comment from OPIS, an independent news service. Further updates are awaited from the company regarding these flaring incidents.
Impact on Refined Product Trading
In Tuesday's spot refined product trading, there were no bids or offers for January-delivered Los Angeles CARBOB. This has kept the differentials flat compared to Monday's last traded level, which was observed at 15cts under the NYMEX February RBOB contract. Similarly, the price remained 2cts below Monday's average. As per the latest data available at 1:46 p.m. ET, the implied price has shown a decline of about 5cts, settling at 2.0569/gal.
Los Angeles ULSD, on the other hand, witnessed two trades at 15.5cts under the NYMEX March ULSD contract. This indicates a 1.25cts weakness compared to Monday's average. The implied price for Los Angeles ULSD has fallen by 1.43cts, amounting to $2.5069/gal.
Reporting by My Nguyen
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