Par Pacific’s Hawaii refining system cuts run rates, defers turnaround

Par Pacific Holdings Inc. has reduced throughput rates and will defer scheduled maintenance at subsidiary Par Hawaii Refining LLC’s 94,000-b/d and nearby 54,000-b/d refineries in Kapolei, Ha., on the island of Oahu, to accommodate Hawaii’s reduced demand for refined products amid the coronavirus (COVID-19) interruption.

While crude runs will be decreased during the period, the proposed reduction will allow the company to maintain an ample supply of refined products to satisfy Hawaii’s current demand, Par Pacific said.

“We want to assure customers and communities statewide that we are continuing to make products [including jet fuel, gasoline, diesel, utility fuels, and ship fuels] at our refinery in Kapolei and distributing products by ground transportation, pipeline, and by barge statewide,” said Jim Yates, president of Par Hawaii, in a separate statement posted to the operator’s website.

While Par Pacific Holdings revealed neither the status of current throughputs at the Hawaii refining system nor an anticipated timeframe for the run-rate reduction, the company did confirm it will delay a planned turnaround of the system until third-quarter 2020.

“[Significant] planned downtime” of the Hawaii refining operations was previously scheduled for this summer, William C. Pate, Par Pacific Holdings’ president and chief executive officer, said in the company’s Feb. 26 fourth-quarter 2019 earnings conference call with investors.

Located about 2 miles from one another, Par Pacific Holdings’ Hawaii refining and distribution operations includes 148,000 b/d of combined refining capacity, a logistics system supplying the state’s major islands, and 91 retail locations.

Known as the Par East and Par West sites, the refineries also include the following combined processing capacities:

• Vacuum distillation, 75,000 b/d.
• Hydrocracking, 19,000 b/d.
• Catalytic reforming, 13,000 b/d.
• Visbreaking, 11,000 b/d.
• Naphtha hydrotreating, 13,000 b/d.
• Diesel hydrotreating, 10,000 b/d.
• Hydrogen production, 18 MMcfd.

In third-quarter 2019, Par Hawaii completed construction of the system’s 10,000-b/d diesel hydrotreating unit at a cost of about $27 million, the company said in its 2019 annual report released on Mar. 2.

The new unit enables the refining system to flexibly convert an additional 5,000-7,000 b/d of intermediate products into jet fuel or ultralow-sulfur diesel to help meet Hawaii’s jet fuel and bunker fuel demand in compliance with the International Maritime Organization’s new regulations requiring ships to use marine fuels with a sulfur content below 0.5% that took effect earlier this year.

Par Pacific Holdings purchased its 54,000-b/d Par West Kapolei refinery—which formerly belonged to Chevron USA Inc.—from Island Energy Services LLC in 2018 and the 94,000-b/d Par East refinery from Andeavor (formerly Tesoro Corp.) in 2013 (OGJ Online, Aug. 31, 2018; Nov. 10, 2016; Sept. 27, 2013).