Viva Energy finalises restoration works, production set to return to over 90%
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The news: Viva Energy stated that works to restart the Residue Catalytic Cracking Unit (RCCU) have been officially completed, with production set to return to over 90% of normal capacity following a fire in mid-April. This follows a fire at its Geelong refinery on 15 April.
The context: Its alkylation unit remains offline after being isolated from operation, which limits the refinery’s ability to convert liquefied petroleum gas into petrol. The company said the unit is expected to remain out of service through 2027.
The restart of RCCU operations is set to restore the Geelong refinery’s ability to increase finished product yields and improve margins by converting a greater portion of lower value products into higher value finished products.
The refinery’s margin for the April-May period was USD23.9 ($34.1) per barrel from a refining intake of 6.5 million barrels of oil equivalent, reflecting reduced production alongside increased crude premiums stemming from the fire.
The company said it is still conducting an investigation into the cause of the fire; however, preliminary reports indicate it was due to a failure within the piping of the alkylation unit.
The source: ASX
