Viva Energy (ASX:VEA) makes moves to shut Geelong Refinery

Viva Energy (ASX:VEA) has started preparations to shut down the Geelong Refinery’s Residual Catalytic Cracking Unit (RCCU) and associated processing units.

They will be closed together with the smaller of the Crude Distillation Units, with effect from early May 2020.

The Refinery’s main Crude Distillation Unit and all other processing units will continue to operate.

Over the last month, the Refinery has taken steps to operate processing units at reduced rates as a result of the measures in place to manage Covid-19. 

The Company expects refining intake to be reduced to approximately 2.5 Million Barrels per month, subject to normal refining optimisation decisions.

Taking into account the cost efficiencies that would flow from not operating the units, the incremental financial impact of this action is expected to be immaterial in the current refining margin environment.

The Company expects no disruption to fuel supply.

Shares in Viva Energy (ASX:VEA) are trading 0.4 per cent higher at $1.36.
 
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Source: Finance News Network