Marathon to Shut Third-Largest US Oil Refinery After Fire
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Marathon Petroleum Corp. is in the process of shutting the third-largest oil refinery in the U.S. after a blaze at a storage tank.
MORE SHUTDOWNS COMING: Two refineries to close for maintenance
The fire that broke out at the Garyville refinery in south Louisiana early Aug. 25 is contained but ongoing, and residents within a 2 mile-radius were initially evacuated, according to Marathon spokespeople. That order was later lifted.
Diesel rose 5% while gasoline futures jumped about 4%. The outage threatens to deplete already below-average distillates stockpiles at a time when U.S. demand for the fuel is set to rise going into the harvest and heating seasons.
Garyville, located on the Mississippi River between New Orleans and Baton Rouge, produces about 265,000 barrels a day of gasoline, or about 3% total U.S. consumption. It also makes about 230,000 barrels per day of diesel, according to Andy Lipow, president of Lipow Oil Associates in Houston. The refinery has a crude processing capacity of 596,000 barrels a day.
The Louisiana Department of Environmental Quality “is conducting monitoring in the community adjacent to the site and all readings are nondetect,” according to spokesperson Gregory Langley.
— With assistance from Jennifer A. Dlouhy.
New video shows the fire at the Marathon Petroleum refinery in Garyville remains intense. @FOX8NOLA pic.twitter.com/eTerA3tjjQ — Zack Fradella (@ZackFradellaWx) August 25, 2023
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