(hydrocarbonprocessing) -- Analysts estimate that about two-thirds of refining capacity along the US east coast has been shut down because of Sandy, a Category 1 hurricane expected to make landfall late Monday in the Northeast.
PBF Energy is operating its refineries in the northeast at reduced rates, the company said Monday, the latest refiner to scale back operations as Hurricane Sandy approaches the east coast.
PBF is reducing rates at a 180,000 bpd refinery in Paulsboro, N.J., and a 190,000 bpdrefinery in Delaware City, Del., would be at reduced rates but fully staffed during the hurricane, the company said.
The drop in production has so far had little effect on retail prices, however, because short-term demand is expected to virtually disappear as drivers stay home and flights are cancelled.
About 6.5% of total US refining capacity is near the region in Sandy's forecast path, according to the US Energy Information Administration.
On Sunday, Phillips 66 began shutting down its Bayway refinery in Linden, N.J., and the company said it expects the refinery to be completely idle by Monday. Phillips 66 fuel terminals in Riverhead, N.Y. and Tremley Point, N.J. have already been shut.
Philadelphia Energy, which operates a former Sunoco Inc. refinery in Philadelphia after buying a majority stake in September, was discussing reducing rates of some production units at the 330,000 bpd refinery, a person familiar with the refinery said.