Phillips 66: Bayway Refinery

From Researchandideas
Jump to: navigation, search
Conoco and Phillips 66 announced on November 18, 2001 that their boards of directors had unanimously approved a definitive agreement for a "merger of equals". The merged company, ConocoPhillips, became the third-largest integrated U.S. energy company based on market capitalization and oil and gas reserves and production. On November 11, 2011 ConocoPhillips announced that Phillips 66 would be the name of a new independent oil and gasoline refining and marketing firm, created as ConocoPhillips split into two companies. ConocoPhillips kept the current name of the company and concentrated on oil exploration and production side while Phillips 66 included refining, marketing, midstream, and chemical portions of the company. Photo: Hugh Pickens all rights reserved.

by Hugh Pickens, Ponca City Oklahoma


The purpose of this report is to provide a comprehensive overview of Phillips 66 that documents and explains the company's business strategy and execution of that strategy.

Major Sections of this report on Phillips 66 include:

Safety, Environment, Legal


Corporate


Strategic and Financial


Business Segments


Stock Market


Reference

Refining Business Segment


Increasing Profitability in Refining Business Segment


Detailed Look at Ponca City Refinery


Other Phillips Refineries


Other Locations


Contents

Master Index of Articles about Phillips 66

The 587 foot tall Mammoet PTC 140 crane, seen here from North First Street, towers over the Refinery Complex in Ponca City. The supercrane was used to move two new 232 ton coker reactor units within the refinery on September 29, 2013. Phillips was willing to invest $70 million in the two new coker reactor units because the Ponca City Refinery is one of the best run, safest, and most profitable of Phillips' fifteen worldwide refineries and Garland wants the refinery in Ponca City to continue to run smoothly and profitably. This photograph of the supercrane in Ponca City was taken from almost two miles away from the crane. Photo: Hugh Pickens All Rights Reserved.
Hugh Pickens, an analyst who closely follows Phillips 66, speaks with Phillips CEO Greg Garland (right) about the disposition of the North Tower, South Tower, and Research West at Phillips' Ponca City Refinery after Garland's speech to the Bartlesville Chamber of Commerce on August 13, 2014.

by Hugh Pickens, Ponca City Oklahoma


The purpose of this report is to provide a comprehensive overview of Phillips 66 that documents and explains the company's business strategy and execution of that strategy.

Major Sections of this report on Phillips 66 include:

Safety, Environment, Legal


Corporate


Strategic and Financial


Business Segments


Stock Market


Reference

Refining Business Segment


Increasing Profitability in Refining Business Segment


Detailed Look at Ponca City Refinery


Other Phillips Refineries


Other Locations


Bayway Refinery

The Bayway Refinery, located on New York Harbor in Linden, N.J., has a crude oil processing capacity of 238 MBD and processes mainly light, low-sulfur crude oil. Crude oil is supplied to the refinery by tanker, primarily from the North Sea, Canada and West Africa. Bayway refining units include one of the world’s largest fluid catalytic cracking units, two hydrodesulfurization units, a reformer, alkylation unit and other processing equipment. The refinery produces a high percentage of transportation fuels, such as gasoline, diesel fuel and jet fuel, as well as petrochemical feedstocks, residual fuel oil and home heating oil. The facility distributes refined products to East Coast customers via barges, trucks, pipelines and railcars. Bayway also operates a 775 MMLB/Y polypropylene plant.[1] Photo by William Hartz Flicker Creative Commons Attribution-NonCommercial-ShareAlike 2.0 Generic (CC BY-NC-SA 2.0)
A 3D map of a possible oil pipeline route to bring crude oil shipped to Albany, N.Y. to the Phillips 66 refinery in Linden, NJ. Pilgrim Pipeline officials say the pipeline would reduce the number of barges in the Hudson River, though environmentalists are still concerned about any impact to the Highlands. Photo: Pilgrim Pipeline Holdings

Description of Bayway Refinery

The Bayway Refinery, located on New York Harbor in Linden, N.J., has a crude oil processing capacity of 238 MBD and processes mainly light, low-sulfur crude oil. Crude oil is supplied to the refinery by tanker, primarily from the North Sea, Canada and West Africa. Bayway refining units include one of the world’s largest fluid catalytic cracking units, two hydrodesulfurization units, a reformer, alkylation unit and other processing equipment. The refinery produces a high percentage of transportation fuels, such as gasoline, diesel fuel and jet fuel, as well as petrochemical feedstocks, residual fuel oil and home heating oil. The facility distributes refined products to East Coast customers via barges, trucks, pipelines and railcars. Bayway also operates a 775 MMLB/Y polypropylene plant.[2] Bayway is the northernmost refinery along the U.S. Atlantic Basin. Bayway Refinery's nickname, "The Gasoline Machine," is derived from its gasoline-making fluid catalytic cracking unit, which at 145,000 bpd is the largest in the nation. It has the capacity to supply half the gasoline used in New Jersey, the nation's 11th most populous state.[3]

Bayway is the second largest of 12 refineries on the East Coast, and the 25th largest in the United States, according to the U.S. Energy Information Administration. It employs about 800 people at the Linden facility.[4]

History of Bayway Refinery

In 1907 Standard Oil founder John D. Rockefeller acquired several hundred acres of the former Morse family estate between Linden and Elizabeth, New Jersey as the site for the Bayway refinery. Construction of temporary office buildings began on October 15, 1907 and work clearing the heavily wooded land began immediately. The cornerstone of the machine shop, the first permanent structure at the site, was laid on January 18, 1908, and construction continued throughout the year. The first crude stills at Bayway were completed in late 1908 and on January 2, 1909, they were symbolically fired up by William C. Koehler. The facility began processing an initial 10,000 barrels of crude oil per day. Capacity was expanded to an estimated 7,176 barrels per day by 1911. Over the next several years the plant continued expanding and increasing capacity and workforce.[5]

In 1911, Standard Oil was broken up into smaller units in accordance the Sherman Antitrust Act. One of these successor companies was Standard Oil Company of New Jersey, the precursor to Esso and later Exxon, which retained the ownership of the Bayway facilities.[6]

In 1993, the Tosco Corporation finalized proceedings to purchase the refinery from Exxon for a sum of $175 million, although the Exxon Chemical Company continued to run the Chemical Plant. During this time Bayway was operated by Bayway Refining Company, a wholly owned subsidiary of the Tosco Corporation. Under the direction of Tosco, Bayway was able to reorganize and upgrade the facility, and years of operating at a loss for Exxon in the later 1980s were turned around swiftly. Tosco was bought in 2001 by Phillips Petroleum, which merged with Conoco to form ConocoPhillips in 2002 and later spun-off downstream, midstream and chemical assets into a new Phillips 66 company in 2012.[7]

News and Views about Bayway Refinery

May 25, 2017: Phillips Pays New Jersey $39 million Settlement Over Ground Water Contamination

KRGV reported on May 25, 2017 that New Jersey officials say they reached a $39 million settlement with Phillips 66 over ground water contamination. Attorney General Christopher Porrino says Phillips 66 (then ConocoPhillips) was one of 50 oil and chemical firms sued in 2007 by the state over ground water contamination. The state argued that the defendants were responsible for contamination from a gasoline additive called MTBE. In 2012 ConocoPhillips transferred some assets and liabilities, including MTBE cases, to Phillips 66. Phillips 66 Spokesman Dennis Nuss says the case was settled on "mutually acceptable" terms.[8]

April 28, 2017: Phillips 66 is Modernizing SCC units at Bayway Refinery to Increase Clean Product Yield

Greg Garland told analysts during the quarterly earnings conference call on April 28, 2017 pursuing high-return quick-payout projects in refining. "At the Billings Refinery, we're increasing heavy crude processing capability to 100%. This project is expected to be finished later this quarter. At Bayway and Wood River Refineries, we're modernizing SCC units to increase Phillips 66 is clean product yield. Both of these projects are expected to complete in the first half of 2018." Garland added that during the quarter, Phillips 66 had major turnarounds at the Ferndale, Bayway, Lake Charles and Wood River refineries. "So during the quarter, we successfully completed several major turnarounds in Refining and Chemicals. This represents our highest level of turnaround activity in a quarter since the formation of our company."[9]

March 24, 2017: Phillips 66 Bayway Refinery to Sponsor Union County Falcon Cam

Tap into Union reported on March 24, 2017 that Phillips 66 Bayway Refinery will be sponsoring educational programming around the Union County Falcon Cam bringing no-cost wildlife education programs to administrators, teachers, and students throughout Union County, New Jersey. Thanks to this new partnership, students, scientists, and other wildlife enthusiasts all over the world will have more opportunities to study a pair of rare peregrine falcons that have made their nest on the roof of the historic 17-story Union County Courthouse Tower, located in the bustling center of midtown Elizabeth. “The Phillips 66 company vision is providing energy, improving lives. Our Phillips 66 sustainability efforts are built on four pillars: operational excellence, environmental commitment, social responsibility, and economic performance. Bayway Refinery is proud to demonstrate our social responsibility with the sponsorship of the Peregrine Falcon Educational Programs in Union County. We are excited to be part of a program that will help make learning fun and inspire children within our community,” said Mike Bukowski, Bayway Refinery Manager.[10]

January 9, 2017: Phillip 66 Bayway Refinery Donates $30,000 to Fund Outdoor Pavilion

New Jersey Suburban News reported on January 9, 2017 that Phillips 66 Bayway Refinery will fund with a $30,000 grant to build an outdoor pavilion and associated activities by Groundwork Elizabeth's Green Team, which will serve as a headquarters for learning about our ecology and the need to preserve nature in our urban communities. "Phillips 66 is proud to sponsor projects that protect and enhance the environment and add benefits to our local communities. We're dedicated to habitat preservation and sustainability in the areas surrounding our operations," said Nancy Sadlon, manager, Phillips 66 Bayway Refinery Public Affairs.[11]

August 30, 2016: Phillips 66 Cuts Production at Bayway Refinery

Reuters reported on August 30, 2016 that Phillips 66 has cut production by roughly 5 percent at Bayway Refinery amid weak refining margins, according to a source familiar with the refinery's operations. The U.S. gasoline crack spread, an indicator of how much refiners make from converting a barrel of oil into a barrel of gasoline, remains at its lowest level in the past five years. The U.S. diesel crack spread also remains at five-year lows. U.S. and global refining margins have been hurt by historically high gasoline and diesel inventories. Refining executives and analysts across the globe are predicting refiners are going to be forced to scale back production to reduce inventories, balance the market and boost margins. East Coast refineries see some of the weakest margins due in part to their supply constraints, and experts predict they would be among the first to cut runs.[12]

July 29, 2016: Bayway Refinery is Undergoing an FCC Modernization to Increase Gasoline Yield

Phillips announced during their earnings release on July 29, 2016 that the Bayway Refinery is undergoing an FCC modernization to increase gasoline yield, expected in 2018.[13] Greg Garland told analysts during the 2016 second quarter earnings conference call on July 29, 2016 that "At Bayway, work on the FCC modernization is progressing. These are all high return, quick payout projects."[14]

July 7, 2016: Cruel Summer for US Refiners on the East Coast as Margins Tank

Retuers reported on July 7, 2016 that over the last 30 days, estimates for second-quarter earnings have fallen 17 to 20 percent for four of the major U.S. refiners including Phillips 66 as gasoline and diesel inventories stubbornly sit well above five-year averages driving down refiner margins as gasoline inventories remain much higher than they were last year at this time. The U.S. gasoline crack spread 1RBc1-CLc1, a proxy for refiner margins, has dropped 34 percent in two weeks. On July 6, 2016, it hit a five-year low for this time of year of $13.10 a barrel. That is less than half the crack spread of $28 a barrel at this time last year. "An RBOB crack trading 13 bucks in the middle of driving season is unheard of," said one trader.

The situation is especially dire for U.S. East Coast refineries where refiners have been cutting production. The glut is so extreme that several tankers full of products were forced to sit idle in New York Harbor recently, waiting to unload. Phillips 66 has one East Coast refinery at Bayway, New Jersey. “PADD 1 is a holy mess,” said Andrew Lebow, senior partner at Commodity Research Group in Darien, Connecticut. “It is very unusual. If a market becomes extremely oversupplied, like PADD 1, they are going to have to cut runs.”[15]

March 9, 2016: Phillips Shuts FCCU after Failed Restart at Bayway Refinery

Phillips shut its 150,000 b/d fluid catalytic cracker unit (FCCU) on Wednesday morning after an attempt to restart the unit failed, according to a source familiar with the plant’s operations. The FCCU experienced an issue with a valve and was initially forced to shut down overnight, the source said. The source was not aware of the new timetable to restart the unit. Earlier Wednesday, the company advised the community that flaring may occur as the FCCU restarts, according to a taped recording on the refinery’s community hotline.[16]

March 3, 2016: Phillips Has $150 million Project at Bayway Refinery to Upgrade FCC

Greg Garland talked at the Bank of America Merrill Lynch 2016 Refining Conference on March 3, 2016 about some of the optimizing strategies Phillips 66 is utilizing across their system to improve refining margins through selective investments including a $150 million project to upgrade the FCC at Bayway Refinery. "As you look at Bayway, we have the opportunity to upgrade the FCC at Bayway. It’s the largest FCC in the northern hemisphere, but it’s like a 1957 Chevy. So we can improve the yield there and make more Phillips 66 gasoline coming out of that, it’s about a $150 million project, $75 million of EBITDA."[17]

February 2, 2016: Phillips to Modernize FCCU at Bayway Refinery

Phillips said on Tuesday it was planning to modernize the fluid catalytic cracking unit (FCCU) at its Bayway refinery in Linden, New Jersey. The project would include replacing the existing older reactor with modern technology that will increase gasoline and diesel yield by about 4,000 b/d, a company spokesman said. The company further clarified, that the overall unit capacity of the FCCU would remain unchanged at 145,000 b/d.[18]

October 20, 2015: Operations Return to Normal at Phillips 66’s Bayway Refinery

Operations at Phillips 66’s Bayway refinery in Linden, New Jersey were at normal planned levels Tuesday after a failure at a transformer led to a power outage on Monday, according to sources.[19]

October 12, 2015: Phillips Plans Upgrades at Bayway Refinery

Phillips announced modernization plans of the fluid catalytic cracking unit (FCCU) at its Bayway, New Jersey refinery, and an upgrade of the vacuum tower at its Billings, Montana refinery. In addition, the company said storage capacity was being added at its Beaumont terminal in Texas and it was investing in the Bayou Bridge pipeline project to move crude from Texas to Louisiana markets.[20]

October 2, 2015: Phillips 66 Prepares for Hurriance Joaquin at Bayway Refinery

Reuters reported on October 2, 2015 that Phillips 66 is preparing for a big test at Bayway Refinery of whether they learned lessons from Hurricane Sandy as Hurricane Joaquin, a category 4 storm, could land early next week in the Mid-Atlantic region. Phillips 66 elevated power substations and hardened storm doors at a saltwater pump station after Hurricane Sandy forced the company to shut its 238,000 barrel-per-day refinery in Linden, New Jersey for weeks due to electrical issues, Dennis Nuss, a company spokesperson, said on Thursday. Not all the plant’s substations have been elevated, according to a source familiar with the plant’s operations. However, the substations most vulnerable to flooding have been raised, the source said. The company has already secured critical emergency equipment and resources for quicker post-storm mobilization. This includes temporary office space, housing, food, fuel and generators, Nuss said. “The safety of our employees and their families remains our highest priority," Nuss said.[21]

Bayway Refinery Was Shut Down for Almost a MOnth After Hurrican Sandy

Houston Business Journal reported on October 30, 2012 that Phillips 66 has reported a power outage at its Bayway refinery. The plant had been shut down as a precaution, but the outage could slow the recovery at the plant. Phillips 66 said there was "some flooding in low-lying areas" of the refinery. Utility PSE&G said power was likely to be restored no sooner than in 24 to 48 hours. The flooding at Bayway, which had been seen by experts as the refinery most vulnerable to Sandy's record 13-foot (4-meter) storm surge and subsequent power outages, is a potential second nightmare for Phillips 66, which had struggled to restore its Alliance, Louisiana, refinery after Hurricane Isaac in August. That storm pushed more than 2 feet of floodwater into the plant.[22][23]

Phillips 66 reported on November 19, 2012 that the Bayway Refinery is expected to resume normal operations by the end of November. Work to repair or replace damaged equipment, primarily electrical equipment impacted by saltwater during the storm surge from Hurricane Sandy, is progressing. The refinery’s processing units are in good condition. The Bayway polypropylene plant will follow the same restart schedule as the refinery.[24]

Fox Business reported on November 27, 2012 that Bayway Refinery has resumed normal operations following extensive repair and replacement of equipment impacted by salt water during Hurricane Sandy.[25]

September 10, 2015: Phillips Charts a New Path by Sea to Get Bakken Crude to Bayway Refinery

Argus reported on September 10, 2015 that Greg Garland told the Barclays CEO Energy Conference on September 9, 2015 that Phillips 66 expects to take Bakken crude shipped by pipeline to the Texas coast and move it by ship, either to its own facilities at the Bayway Refinery in New Jersey or abroad. Garland added that shipment on one of Phillips' Jones Act vessels will be competitive with rail. According to Garland the combination of a 25pc interest in 450,000 b/d of pipeline capacity connecting North Dakota fields to the Texas coast and the Beaumont terminal will offer a new, competitive path for midcontinent crude. The Dakota Access Pipeline and Energy Transfer Partners Crude Oil pipelines would come online late next year.[26]

September 9, 2015: Phillips Resumes Hauling North Dakota Bakken Crude by Rail to BayWay Refinery

Phillips has mobilized some crude oil railcars that were parked earlier this year when cheap imports eroded the profitability of moving domestic crude by rail, the president said. The company has pulled some railcars out of storage to haul Bakken crude to its New Jersey and Washington state refineries, company president Tim Taylor told Reuters. The company declined to say how many cars it took out of circulation or how many are back, but the move provides context to how quickly rail movements can be mobilized or halted depending on price discounts between inland and imported crude oil. [27]

September 1, 2015: Phillips to Restart FCCU at Bayway Refinery

Phillips reported it was going to restart the fluidized catalytic cracker unit (FCCU) at its Linden, New Jersey refinery, according to a filing with the National Response Center according to a report from Reuters on September 1, 2015.[28]

August 28, 2015: Phillips Shuts FCCU Due to Leak at Bayway Refinery

Phillips unexpectedly shut down a 150,000 b/d fluid catalytic cracker unit (FCCU) at its Bayway refinery in New Jersey on Friday, the second gasoline-making unit on the East Coast to experience an unexpected outage at a time of high demand at U.S. gas pumps. PBF Energy Inc was forced to shut a 65,000 b/d catalytic cracker a week ago at its 182,000 b/d Delaware City, Delaware, refinery for up to a month due to a compressor fire. Together, the two units account for roughly 40 percent of the overall catalytic cracking capacity on the East Coast, according to the U.S. Energy Information Administration (EIA). The FCCU at Bayway was shut down on Friday morning after workers discovered a leak, the source said, adding that it was not known how long the outage would last. U.S. production of finished gasoline fell nearly 500,000 b/d last week after hitting a record high 10.3 million b/d the week before, according to the EIA data, reflecting impacts from a series of refinery outages according to report from Reuters on August 28, 2015.[29]

August 28, 2015: Phillips Shuts Down 150,000 bpd Fluid Catalytic Cracker at Bayway Refinery After Leak

Genscape reported on August 28, 2015 that Phillips unexpectedly shut down a 150,000 bpd Fluid Catalytic Cracker at Bayway Refinery due to a leak accordinng to someone familiar with operations at the refinery. Genscape reported that operations at Bayway Refinery remained normal at 953 am on August 28, 2015 but a source said this was because the unit was coming down at the time and flaring would occur shortly. Officials at Bayway Refinery are still assessing the problem and a restart time is currently unavailable. Phillips did not immediately respond to a request for comment.[30]

August 11, 2015: Phillips to Keep Powerformer Shut for ‘Couple Weeks’ at Bayway Refinery

Phillips will keep a powerformer shut at its Bayway refinery in Linden, New Jersey as it fixes a leak that was discovered on Friday, according to a person who is familiar with the plant’s operations. The powerformer unit was shut on Friday after the leak was discovered. The unit is expected to be shut for a couple weeks while the leak is fixed. There is no impact to other units at the refinery, the source said according to a report from Reuters on August 11, 2015.[31]

August 7, 2015: Phillips Shuts Powerformer at Baywa Refinery

According to a source, Phillips shut a powerformer unit Friday at its Bayway refinery in Linden, New Jersey, according to a source familiar with the plant’s operations. The 28,000 b/d unit was shut after a leak was discovered and officials were assessing damage, the source said according to a report from Reuters on August 7, 2015.[32]

July 17, 2015: Phillips Shuts Hydrotreater Due to Leak at Bayway Refinery

According to a source, Phillips shut a 58,000 b/d hydrotreater associated with its fluid catalytic cracker Friday at its Linden, New Jersey refinery after a leak was discovered, according to a source familiar with the plant’s operations. The leak was first discovered Thursday but the unit was not shut down until Friday, the source said according to a report from Reuters on July 17, 2015.[33]

April 30, 2015: Phillips Had Lower Earnings Due to Plant Maintenace at Bayway Refinery

Greg Garland announced during the 2015 first quarter earnings conference call that the Atlantic Basin had lower earnings mainly due to plant maintenance at the Bayway refinery.[34]

February 25, 2015: Union of Concerned Scientists Sends Letter to Phillips 66 about Risks to Bayway Refinery and Other Coastal Refineries

The Union of Concerned Scientists sent a letter to Phillips 66 on February 25, 2015 expressing concern about the lack of public disclosure of physical risks due to climate change at Phillips 66’s coastal refineries. "As you are aware, Superstorm Sandy caused a 7,770 gallon oil spill at the Bayway refinery in 2012. The refinery was shut down for several weeks due to flood damage, and incurred significant maintenance and repair expenses," says the leter. "Risk of such events in the future is likely to grow. Diminished refining utilization rates, downtime or closure of facilities due to direct damage, danger to employees, releases of environmental contamination, disruption in supply chains and distribution centers, and/ or power supply due to storm surge or sea level rise could have a material impact on production and related cash flows."[35]

February 24, 2015: Phillips Restarts Crude Unit at IBayway Refinery After Previous Attempts Met With Problems

Phillips restarted the crude unit after unexpected delays at its Bayway refinery in Linden, New Jersey, a person familiar with the facility's operations said on Tuesday. The restart of the crude unit was expected to begin on Monday, but previous attempts to restart the unit met with problems, including frozen lines. The company planned on shutting down the unit for about a week of planned maintenance on February 4.[36]

February 23, 2015: Phillips Delays Crude Unit Restart Due to Cold Weather at Bayway Refinery

Phillips experienced delays due in part to the winter freeze on Friday in restarting a crude unit at its Bayway refinery in Linden, New Jersey. The unit had been shut for around a week of planned maintenance on February 4. The company plans on restarting the unit today, a source said Monday.[37]

January 29, 2015: Phillips Bayway Refinery Donates $29,000 for Paramedic Radios in New Jersey

New Jersey reported on January 29, 2015 that Phillips 66 has donated $29,000 to purchase replacement mobile and portable paramedic radios that communicate with all the local towns to enhance communication during responses to the community.[38]

January 26, 2015: CSX Railroad Warns of Crude Oil Delay to Bayway Refinery Due to East Coast Snow Storm

CSX Corp warned customers on January 26, 2015 that deliveries of crude oil along its primary New York route may be delayed up to 48 hours due to a winter storm. The company said that it expected delays to begin on Tuesday. CSX said Maryland, Pennsylvania, New York, New Jersey, Massachusetts, Connecticut, and northern Virginia could be affected. The CSX line carries crude from Chicago to Albany, New York, where it is loaded on to ships bound for Irving Oil’s refinery in Saint John, New Brunswick, or taken to refineries in the Philadelphia area. Many trains bypass Albany and head south along the River Line to Phillips 66’s 238,000 b/d refinery in Linden, New Jersey, or Philadelphia Energy Solutions’ 335,000 b/d refinery in Philadelphia, along with others in the region. Many East Coast refineries have built new offloading rail terminals as they have become increasingly reliant on Bakken crude oil from North Dakota. Philadelphia Energy Solutions’ rail terminal can handle up to 210,000 b/d, while the terminal at the Linden refinery handles up to 165,000 b/d. Both facilities are served by CSX. [39]

November 15, 2014: Phillips Reports Emissions from Bayway Refinery

Phillips Reports Emissions from Bayway Refinery [40]

November 5, 2014: Phillips Set to Overhaul FCCU at Bayway Refinery in 2016 to Increase Diesel Production 25 Percent

Phillips plans to overhaul the 150,000 b/d fluid catalytic cracking unit (FCCU) at its refinery in Linden, New Jersey, in 2016, as part of a broader goal to increase diesel production by as much as 25 percent. The overhaul will include construction of a new reactor for the FCCU and is expected to begin in the third quarter 2016.[41]

October 29, 2014: Phillips Began Operations of 75,000 bpd Rail Facility at Bayway Refinery in August

Greg Garland told analysts during the third quarter earnings conference call on October 29, 2014 that in August, Phillips began operations at its 75,000 barrel a day rail rack at the Bayway Refinery. "We're constructing a rail loading facility with up to 200,000 barrels a day of capacity in North Dakota. In August, our Company began operations at its 75,000 barrel a day rail rack at the Bayway Refinery, and the 30,000 barrel a day rail rack at our Ferndale Refinery is in the commissioning phase. This quarter, we improved our advantaged crude capture to 95%."

Garland added that even with the rail rack coming online, Phillips would continue to barge Gulf Coast crude over to the East Coast. " I think we'll continue to do both. We've actually run the Jones Act ship up around the Bayway also, and so I think you'll see us continue to do both."[42]

October 20, 2014: Chemical Leak of Ethylaluminum dichloride Contained at Bayway Refinery

CBS reported on October 20, 2014 that police, firefighters and a hazmat team responded to the Infineum plant inside the Bayway Refinery Complex around 8:30 a.m. on October 20, 2014 and contained a chemical leak. In a statement on the company’s website, the plant said a 25 percent concentration of ethylaluminum dichloride in a hydrocarbon oil was released and plant employees were ordered to shelter in place. Police said the leak did not pose a threat to the surrounding area. Authorities sent a message to neighbors letting them know to close their doors and windows. “No injuries have been reported, and there is no health or safety impact either at the site or within the community,” said Infineum USA Spokesperson Lissette Gonzalez. “Crews that were dispatched to monitor the fenceline and surrounding areas did not detect any odor or hydrocarbon concentrations.” Ethylaluminum dichloride is a clear, yellow liquid that turns into fumes when it hits the air. It is used as a catalyst to make other chemicals like fuel additives and the chemical can irritate the nose, eyes, skin and throat and is highly flammable and reactive. There is no word on what caused the leak.[43]

September 3, 2014: Phillips Receives First Crude-Only Train at Bayway Refinery

Reuters reported on September 3, 2014 that Greg Garland told analysts at the Barclays CEO Energy-Power Conference that Bayway Refinery in Linden, New Jersey, received its first crude-only train at the plant's newly expanded offloading system. The system can take up to 70,000 bpd, in addition to up to 75,000 bpd from a joint venture with Global Partners. Phillips 66's 30,000-bpd offloading system at Ferndale Refinery is also on track to start up in the fourth quarter.[44]

Garland also said that Phillips has ordered another 500 railcars to increase its fleet to 3,700 railcars. which will allow it to eventually move up to 185,000 barrels per day (bpd) of North Dakota Bakken crude oil to its refineries on the East and West coasts.[45]

June 10, 2014: Phillips Honored with Philanthropy Award at Bayway Refinery

New Jersey reported on June 10, 2014 that Trinitas Health Foundation honored Phillips with a Philanthropy Award at the Trinitas Health Foundation’s “Passion for Our Patients” Gala. Gary Horan, FACHE, President and Chief Executive Officer noted, "Phillips 66 Bayway Refinery exemplifies how philanthropy connects a community. Throughout our partnership, they have helped financially including generous assistance to acquire a digital endoscopy scanner, breast health imaging equipment, C.O.R.E. (Center of Regional Education) Building Project, Outpatient Electronic Medical Records Project, Emergency Department Patient Cardiac Monitors Upgrade Project, and with in-kind donations of office furniture for the Women's Clinic. They've also answered patients' direct needs with donations of clothing and toys. We are thrilled to honor Phillips 66 at the Gala."[46][47]

"Our relationship with Trinitas began more than two decades ago, and we are pleased to be honored tonight," said Mary Phillips, Community Relations Coordinator. "Many of our employees and neighbors call Trinitas their community hospital, and assisting our neighbors in the communities where we operate our business is consistent with our values of safety, honor, and commitment. We are looking forward to being honored and receiving the Trinitas Celebrating Philanthropy Award." [48][49]

May 20, 2014: 38 Organizations Join Forces To Oppose Proposed Oil Pipeline to Bayway Refinery

The New Jersey Star-Ledger reported on May 20, 2014 that a coalition of 38 organizations from New York and New Jersey has called on Governors Chris Christie and Andrew Cuomo to oppose the proposed 150-mile oil pipeline between Albany, NY and Phillips' Bayway Refinery in Linden, NJ. “Putting the Pilgrim Pipeline through one of the most densely populated areas in the country is an accident waiting to happen, given how volatile Bakken shale oil is,” said Jeff Tittel, director of New Jersey’s Sierra Club chapter and the leader of the teleconference. “Even worse is having this pipeline pass through major water supply rivers” in northern New Jersey’s Highlands region, Tittel added. “This is playing Russian roulette with a fully loaded gun.”[50]

George Bochis, vice president of development for Pilgrim, said the company is “disappointed that these groups are opposing the project without meeting with us. We would be happy to meet to provide additional information. “We are surprised that these groups prefer the status quo when this project could provide a safer, more environmentally friendly and efficient means to transport these products."[51]

April 30, 2014: 70,000 barrel per day Rail Rack Expected to Come Online in the sSecond Quarter at Bayway Refinery

Garland reported during the first quarter earnings call that a 70,000 barrel per day rail rack is expected to come online in the second quarter.[52]

April 4, 2014: Pilgrim Proposes Pipeline from Albany to Bayway Refinery

Scott Fallon reported at NewJersey.com on April 4, 2014 that Pigrim Pipeline, recently formed company, is proposing a new pipeline through North Jersey’s Highlands — potentially along Route 287 — to move oil back and forth between a transportation hub in Albany, N.Y., and the Phillips 66 Bayway refinery in Linden. The company has received only preliminary financing and has yet to file any documents or permit applications with regulatory agencies, but it has begun surveying land and contacting local officials in North Jersey to arrange presentations. The crude originates from the booming Bakken region in North Dakota, which is producing about a million barrels of oil a day. It is shipped by rail to Albany, where New York officials have allowed the amount handled at the Hudson River port to triple to 2.8 billion gallons a year. About 25 million gallons a week is pumped onto several barges and a tanker that travel 145 miles down river to the Bayway facility and another refinery in Canada. Pilgrim has not contacted Phillips 66 even though its Bayway refinery is integral to the project. “Until today, Phillips 66 was not familiar with the Pilgrim Pipeline project, and we have not had any discussions with Pilgrim Pipeline Holdings LLC regarding the project,” said Dennis Nuss, a Phillips 66 spokesman. Environmentalists say putting a pipeline in the middle of New Jersey’s most important water generating region would be a looming disaster. “Imagine if a pipeline leaked into the Ramapo River or the Boonton Reservoir,” said Jeff Tittel, director of the New Jersey Sierra Club, who learned of the project from Highlands residents contacted by Pilgrim surveyors. “This is something that could have catastrophic effects.”[53]

February 14, 2014: Garland Says Phillips Plants to Move 75,000 BPD Avantaged Crude to Bayway Refinery

Greg Garland told security analysts at the Credit Suisse Global Energy Summit on February 12, 2014 that Phillips has the rail rack at Bayway and plans to move 75,000 barrels a day to the refinery later this year.[54]

December 17, 2013: Phillips Reports Sulfur Dioxide Emissions at Bayway Refinery

Phillips reported sulfur dioxide emissions at its Bayway refinery in Linden, New Jersey, according to a filing with state pollution regulators. [55]

November 8, 2013: Bayway Plant Maintenance Said to Be Behind Schedule

Bloomberg reported on November 8, 2013 that according to a person familiar with operations, Phillips' Bayway refinery is two or three weeks behind schedule on their turnaround that began in October and was expected to last 40 days. The turnaround included work on the fuel-gas, isomerization and catalytic cracking units. Rich Johnson, a spokesman at Phillips 66’s headquarters in Houston, said maintenance was under way at Bayway but didn’t comment on when the work might be finished. Catalytic crackers upgrade oil feedstock to produce higher-value, lighter products such as gasoline. Isomerization units make unleaded gasoline components to improve the octane level of the fuel.[56]

October 30, 2013: Phillips Building New Rail Facilities at Bayway Refinery

Phillips said on October 30, 2013 it was building a new rail offloading facility at its Bayway refinery in Linden, New Jersey, to handle 75,000 b/d of crude deliveries via train. The Bayway refinery already can receive up to 90,000 b/d of North Dakota Bakken crude via rail. The rail facilities are expected to be operational in the second half of 2014, the company said [57]

October 30, 2013: Garland Says Bayway is a Great Asset And a Challenged Market

Garland told analysts at the third quarter earnings conference that Bayway is a great asset and a challenged market. "But when we look at our assets around the Midcontinent and Gulf Coast, we think those are pretty good assets, and long-term those assets will probably be in our portfolio, because if we think about West Coast and East Coast and U.S, it is not necessarily true, Atlantic Basin is a very challenging place if you well know," said Garland. "If you look at that, 30,000 feet the market that we are in North America and Europe aren't going to be growing market, in fact they're probably declining markets. And so the opportunity to employ capital and make a good return on that is just more difficult. I’d rather move into the higher valued businesses in midstream in chemical and we have been pretty consistent about that. But we are always going to look at our portfolio and optimize the portfolio."[58]

October 30, 2013: Phillips Cut Shipments of Advantaged Crude to Bayway Refinery in Third Quarter

Reuters reported on October 30, 2013 that Garland told analysts during the third quarter earnings conference call that Bayway refinery had been running about 100,000 barrels per day of U.S. crudes in place of imports - from Texas via tanker and North Dakota's Bakken via rail and barge but the company cut rail shipments to 30,000 bpd day when the discount of U.S. crude benchmark West Texas Intermediate to London's Brent all but dried up during the quarter. The discount of North Dakota Bakken crude to WTI also narrowed. However, Phillips 66 is ramping rail shipments back up and running less imported crude now that the spread has widened to more than $10 a barrel. "The spreads now incent us to run Bakken at Bayway today," said Tim Taylor, executive vice president for commercial, marketing, transportation and business development, in a post-call interview. Phillips 66 is building a new rail offloading facility at Bayway to further increase shipments by 75,000 bpd by the second half of 2014.[59]

July 18, 2013: Planned Maintenance Concluded at Bayway Refinery

The WSJ reported on July 18, 2013 that planned maintenance on unspecified equipment at Phillips' Bayway Refinery had been concluded. Phillips spokesman Rich Johnson said he wasn't able to comment on the scope of the work, when it started, or the unit, or units, involved.[60]

June 12, 2013: Employee is Exposed to Hydrogen Sulfide at Bayway Refinery

Phillips 66 said operations were not affected at its Bayway refinery in Linden, NJ after an employee was hospitalized following an exposure to hydrogen sulfide on June 12. The employee was released from the hospital later the same day, a spokesman said.[61]

April 26, 2013: Safety Called into Question at Bayway Refinery

Jim Hoffer wrote at WABC on April 26, 2013 that Bayway refinery worker and Union President Gary Doherty says that Phillips is cutting back on fire safety putting workers and the community in danger. Doherty says that Bayway's Fire Department has been reduced from 10 full-time firefighters in 2008 to seven today. "Managers made it clear to us that this is to save money, and we ask, at what cost?" Doherty said. Phillips 66 says it maintains robust emergency response capabilities and that only one full-time firefighter position has been cut.[62]

Eyewitness News learned that the volunteer rescue squad had its firefighting training eliminated causing nearly half of the refinery workers on the 48-man volunteer fire brigade to quit the squad. "They turned in their gear and they no longer volunteer to come in and fight fires in the refinery," Doherty said. "They fear for their safety." Phillips 66 says it has reversed its decision to cut firefighting training for Bayway's rescue squad resulting in a return of several volunteers who had quit the fire brigade but Eyewitness News has been told that earlier this week, a training class had to be cancelled because of a lack of volunteers.[63]

April 26, 2013: Amy Goldsmith and Fletcher Harper write that Phillips 66 has Reduced Staffing in Safety Areas at Bayway Refinery, Creating Concern for Workers and Neighbors

Amy Goldsmith and Fletcher Harper wrote in an op-ed in the New Jersey Star-Ledger on April 26, 2013 that the threat of an industrial fire and explosion that recently hospitalized hundreds in West, Texas has potentially increased for New Jersey residents as a result of a recent change in ownership at the Bayway oil refinery. "Last year, the refinery became part of Phillips 66," write Goldsmith and Harper. "After the ownership change, Phillips 66 eliminated one of just two positions dedicated entirely to firefighting and response to chemical leaks on the night shift and also reduced staffing for a process unit that can generate deadly hydrogen sulfide gas. They also cut back on long-established procedures for testing fire protection."[64]

According to Goldsmith, director of the New Jersey Environmental Federation, the state chapter of Clean Water Action, and Harper, executive director of GreenFaith, Phillips produces millions of pounds of highly toxic and flammable substances at Bayway Refinery and Phillips May 2012 Risk Management Plan submitted to EPA acknowledges that a flammable mixture could cause serious harm in the surrounding area in which 18,000 people live. "The people who work at the Bayway refinery have been objecting to Phillips 66’s cuts through their union, Teamsters Local 877. Unfortunately, Phillips 66 has responded by ordering a two-week suspension from work for the local union officer who has helped lead the workers’ health and safety efforts for many years," write Goldsmith and Harper. "Between Earth Day (Monday) and Workers’ Memorial Day (this Sunday), this week has focused Americans’ attention on the need to put public safety and environmental protection ahead of extra profits and bonuses for corporate CEOs. This would be a good time for corporate executives such as those at Phillips 66 to start listening."[65]

April 22, 2013: Phillips Reports Normal Operations at Bayway Refinery

Phillips reported normal operations at its Bayway refinery on April 22 following a power dip that affected several unspecified units on April 19, 2013.[66]

March 20, 2013: Phillips Signs Deals to Boost Deliveries of Cheap Crude to Bayway Refinery

Eliot Caroom reported on Bloomberg on March 20, 2013 that Phillips has signed a three-year deal with Enbridge Energy Partners LP for loading rail cars with up to 35,000 to 45,000 barrels a day of Bakkan crude from Enbridge’s terminal in Berthold, North Dakota. The crude will be delivered to Bayway Refinery on the east coast and Ferndale Refinery on the West Coast. Some crude could also be sent to Gulf Coast refineries at Lake Charles, Alliance, and Sweeney.“We are aggressively pursuing increased access to advantaged crudes in North America by partnering with leading third-party transportation providers and better leveraging our own system capabilities,” Greg Garland, Phillips 66 chairman and chief executive officer, said in the statement. “Increasing our utilization of those advantaged crudes should allow us to capture significant value in our refining and marketing businesses.”[67]

February 19, 2013: Bayway Refinery Manager Presents Check for $500,000 to American Red Cross

The Star Ledger reported on February 19, 2013 that David Erfert, Phillips 66 Bayway Refinery Manager, presented a check on behalf of Phillips 66 to Suzanne Lutz of the North Jersey Region of the American Red Cross to assist with hurricane relief efforts following Superstorm Sandy. "The American Red Cross is extremely grateful for Phillips 66’s generosity to support our work helping those impacted by Superstorm Sandy," said Lutz.[68]

January 30, 2013: Garland Says Phillips Utilization Rate Was Negatively Impacted by Hurricane Sandy Related Unplanned Downtime at the Bayway Refinery

Greg Garland told analysts at the 4th quarter earnings conference on January 30, 2013 that Phillips utilization rate was negatively impacted by Hurricane Sandy related unplanned downtime at the Bayway refinery as well as the turnarounds at the Wood River Refinery, Los Angeles Refinery and Borger Refinery. "In refining and marketing, our refining realized margin was $13.67 per barrel with a global crude utilization rate of 91% and a clean product yield of 83%," said Garland. "Lower volumes negatively impacted earnings by $42 million, mainly in the Atlantic basin and the Central Corridor regions, reflecting unplanned downtime due to Hurricane Sandy and plant turnarounds."[69]

January 8, 2013: Global Partners to Deliver 50,000 bpd of Bakken Crude to Bayway Refinery

The Boston Globe reported on January 8, 2013 that Global Partners LP has signed a five-year contract with Phillips 66 to deliver crude oil from North Dakota to Bayway Refinery using its rail transloading, logistics, and transportation system to deliver about 91 million barrels of crude oil to the Phillips refinery over the life of the contract. That equates to approximately 50,000 barrels per day.[70] “Global has established a ‘virtual pipeline’ for the reliable transportation of Bakken crude,” said Tim Taylor, Executive Vice President, Commercial, Marketing, Transportation & Business Development of Phillips 66. “Our five-year agreement with Global assures us long-term access to advantaged crude for our Bayway refinery through what we believe is a cost competitive origin-to-destination supply system to the East Coast.” The Bakken crude oil is expected to be transloaded at Basin Transload LLC’s North Dakota rail facilities.[71]

December 13, 2012: Phillips Announces Marine Charter Agreements to Supply Bayway Refinery with Eagle Ford Advantaged Crude

Phillips 66 reported at their inaugural Analyst Meeting on December 13, 2013 that they had recently signed time charter agreements for two medium-range Jones Act marine vessels that will supply the Alliance and Bayway refineries, and potentially the company’s other Gulf Coast refineries, with Eagle Ford crude beginning in early 2013.[72]

November 27, 2012: Bayway Refinery Resumes Normal Operations

Fox Business reported on November 27, 2012 that Bayway Refinery has resumed normal operations following extensive repair and replacement of equipment impacted by salt water during Hurricane Sandy.[73]

November 26, 2012: Phillips Reports Emissions During Equipment Startup at Bayway Refinery

Businessweek reported on November 26, 2012 that Phillips reported emissions associated with an equipment startup when more than 500 pounds of sulfur dioxide flared at the Bayway refinery on November 25, 2012. The unit was undergoing repairs and maintenance following Hurricane Sandy.[74]

November 17, 2012: Bayway Refinery to Reopen by End of November

Phillips 66 reported on November 19, 2012 that the Bayway Refinery is expected to resume normal operations by the end of November. Work to repair or replace damaged equipment, primarily electrical equipment impacted by saltwater during the storm surge from Hurricane Sandy, is progressing. The refinery’s processing units are in good condition. The Bayway polypropylene plant will follow the same restart schedule as the refinery.[75]

November 5, 2012: Bayway Refinery Leaked 7,700 Gallons of Oil after Hurricane Sandy

Reuters reported on November 5, 2012 that according to the US Coast Guard about 7,700 gallons of fuel spilled from the Bayway Refinery after Hurricane Sandy.[76]

November 2, 2012: Bayway Refinery Could be Weeks Away from Restart

Reuters reported on November 2, 2012 that a source familiar with refinery operations Bayway refinery is weeks away from restarting due to heavy damage caused by salt water flooding into the facility from the neighboring Arthur Kill during Hurricane Sandy. Work is underway on one of the two docks where the pumps were ruined by salt water. Estimates for one dock to return to service and receive product are for next week, the source said.[77]

The Phillips 66 website reported on November 2, 2012 that the refinery remains temporarily shut down at this time while we continue to clean up, assess equipment and begin to make necessary repairs. A decision regarding when the refinery will be able to resume crude oil processing operations will be made once all assessments are complete.[78]

October 31, 2012: Greg Maxwell Updates Analysts on Bayway Refinery Shutdown

Chief Financial Officer Greg Maxwell reported at the Phillips Third Quarter Earnings Conference on October 31, 2012 that before Hurricane Sandy made landfall in the Northeast Phillips safely idled the Bayway refinery and shut down the terminals as a precautionary measure. "There was some flooding in low-lying areas of the refinery but flood waters have since receded. And as of this morning power has been restored at Bayway. We are currently assessing the condition of the assets. And a decision on resuming operations will be made once this assessment is complete."[79]

October 31, 2012: Phillips to Send More Advantaged Crude to Bayway Refinery by Rail

Chief Financial Officer Greg Maxwell reported at the Phillips Third Quarter Earnings Conference on October 31, 2012 that Phillips is delivering 30,000 to 40,000 barrels per day of advantaged crude to the Bayway refinery by rail.Time Taylor, Phillips head of EVP Commercial Transportation, Business Development and Marketing, added during the question period that on average it costs Phillips $2 to $3 a barrel to move crude to Bayway by rail. Asked if there was a significant increase in moving crude to Bayway by rail from the 2nd to the 3rd Quarter, Taylor said there had been an increase. ". I can't remember the exact increase but we're increasing that. As you can guess we're continuing to, so to speak, test the limits. And we can go substantially higher. I think the challenge for us is to continue to work logistics and get more and more of that into the Bayway refinery."[80]

October 30, 2012: Sandy Knocks Out Power at Bayway Refinery

Houston Business Journal reported on October 30, 2012 that Phillips 66 has reported a power outage at its Bayway refinery. The plant had been shut down as a precaution, but the outage could slow the recovery at the plant. Phillips 66 said there was "some flooding in low-lying areas" of the refinery. Utility PSE&G said power was likely to be restored no sooner than in 24 to 48 hours. The flooding at Bayway, which had been seen by experts as the refinery most vulnerable to Sandy's record 13-foot (4-meter) storm surge and subsequent power outages, is a potential second nightmare for Phillips 66, which had struggled to restore its Alliance, Louisiana, refinery after Hurricane Isaac in August. That storm pushed more than 2 feet of floodwater into the plant.[81][82]

October 28, 2012: Phillips Begins Shutdown of Bayway Refinery

Reuters reported on October 28, 2012 that Phillips had begun shutting its Bayway Refinery in Linden, New Jersey in preparation for Hurricane Sandy. "A significant storm surge is predicted for coastal areas in New Jersey and New York, and as a precaution, we are in the process of temporarily shutting down the 238,000 barrel-per-day Bayway Refinery in Linden, N.J. We expect the refinery to be completely shut down by early Monday morning. Our Riverhead, N.Y., and Tremley Point, N.J., terminals also have been temporarily shut down. Our Linden terminal remains open at this time but will be shut down by Monday morning. Decisions regarding restarting these operations will be made once the storm has passed and post-storm assessments have been completed."[83][84]

October 26, 2012: Bayway Refinery Prepares for Hurricane Sandy

Reuters reported on October 26, 2012 that Oil refineries along the U.S. Atlantic Seaboard on Friday braced for Hurricane Sandy, putting in place emergency plans ahead of the storm's expected landfall in the Northeast early next week. Phillips 66, owner of the 238,000 bpd Bayway refinery in Linden, New Jersey, said it is monitoring the storm. "All of our East Coast operations continue to operate normally while we prepare our facilities for the storm," said Rich Johnson, a spokesman for the company.[85]

September 10, 2012: Union Contract Ratified with 52 percent of Bayway Refinery Workers Voting in Favor

Reuters reported on September 10, 2012 that union members at Phillips 66 Bayway refinery ratified a three-year contract with 52 percent of the 288 members of the Teamsters union at the refinery voting in favor of the contract which takes effect on October 1, 2012. Union leadership recommended the contract be accepted but several members of the union expressed displeasure with some of the work rights and quality of life changes in the new contract.[86]

September 7, 2012: Bayway Refinery Workers Vote on New Union Contract

Reuters reported on September 7, 2012 that members of the Teamsters Union at Bayway refinery vote on September 7, 2012 on whether to ratify their latest labor contract. The existing union contract ends on October 1, 2012 but if the contract is voted down there will not be an immediate strike but rather a return to negotiations. Contract negotiations began in June which provided a longer window for the talks. Although The contract was recommended by the union's executive board, according to a source familiar with the situation, some union members plan to vote against the contract which includes issues concerning work rules, overtime pay, and scheduling changes. Rich Johnson, a spokesman for Phillips 66, said the company would prefer to wait until after the ratification vote before offering any comment.[87]

August 27, 2012: County Hazardous Materials Team Called to Bayway Refinery After Compressor Problems

NewJersey.com reported on August 27, 2012 that a hazmat team from Union County was called to the Phillips 66 Bayway Refinery after a routine flaring operation led to problems with a compressor. New Jersey's Department of Environmental Protection contacted the county, asking that the hazmat team collect air samples. They found "no unusual activity," said Tina Casey, a county spokeswoman. The flaring process is a common stopgap measure in which raw materials are burned off in the open air. The resulting flames can be seen atop the plant's towering exhaust pipes, visible in nearby communities and from nearby highways.[88]

August 1, 2012: Phillips to Run 100.000 bpd of Advantaged Crudes to Bayway Refinery

Phillips reported during their second-quarters earnings report on August 1, 2012 that Phillips wants to move the shale crudes from 120,000 to ultimately 450,000 to 460,000 barrels a day and has a plan to get advantaged crude into most of Phillips' refineries. "We are trying to get those crudes to every refinery we can," said Phillips CEO Greg Garland adding that Phillips can probably move 100,000 barrels a day of shale type crudes into Bayway.[89]

August 1, 2012: Bayway Refinery to Remain in Phillips Portfolio if Phillips Can Run More Bakken Crude

Reuters reported on Phillips second-quarters earnings report on August 2, 2012 that the Bayway Refinery is "absolutely" more likely to stay in the company's portfolio if Phillips 66 can increase the amount of Bakken crude the refinery runs, backing out other more expensive crudes. Bayway can run run up to 100,000 bpd of light crude and Phillips plans to rail Bakken crude to Bayway and to its Ferndale Refinery. Phillips 66 plans to buy 2,000 railcars to move cheap crude from North Dakota's Bakken shale play to it Bayway Refinery and to its Ferndale Refinery.[90]

June 24, 2012: Bayway Refinery Earns EPA’s ENERGY STAR® Certification

New Jersey Today reported on June 24, 2012 that Phillips Bayway Refinery has earned the US. Environmental Protection Agency’s ENERGY STAR certification, which signifies that the industrial facility performs in the top 25 percent of similar facilities nationwide for energy efficiency and meets strict energy efficiency performance levels set by the EPA. Bayway Refinery improved its energy efficiency by 11 percent since 2002 by strategically managing energy consumption and making cost-effective improvements to the plant. To earn the ENERGY STAR, Phillips 66 Bayway Refinery replaced a large crude oil unit furnace to newer, more efficient technology in 2010, replaced its sulfur recovery plant in 2007, upgraded various plant energy recovery systems. ENERGY STAR was introduced by EPA in 1992 as a voluntary, market-based partnership to reduce greenhouse gas emissions through energy efficiency.[91]

May 2, 2012: Bayway Employees Join Garland to Ring Wall Street Opening Bell

On May 2, 2012, executives and employees from Phillips 66 celebrated the company's first week of regular trading on the New York Stock Exchange by ringing the opening bell at the New York Stock Exchange (NYSE) with Phillip 66 Chairman and Chief Executive Officer Greg C. Garland leading the delegation, which included employees from Phillips 66' Houston Headquarters and employees from Phillips 66 Bayway Refinery in Linden, NJ.[92]

May 1, 2012: Phillips 66 Plans to Keep the Bayway Refinery

Garland told Reuters on May 1, 2012 that Phillips 66 plans to keep the Bayway plant and its foothold in the East Coast refining market. "It's a good machine. It should be the last refinery standing in PADD I," Garland said.[93]

November 17, 2011: Bayway Refinery Faces a Challenge to Stay Open

NJ.com reported on November 17, 2011 that Bayway Refinery faces a challenge: The crude oil it refines is more expensive than crude oil in other parts of the country, a dynamic that already led to the sale or closure of several East Coast refineries this year. Nearby plants owned by other companies also have been on the chopping block, including two Sunoco plants — in Philadelphia and Marcus Hook, Pa. — that will be sold or closed. "What you’re seeing is a lot of refineries shutting down in this region," said Hamza Khan, an analyst at the Schork Report, which covers energy markets. "Sunoco is pulling out. A number of refineries are shutting down on the East Coast. The onus is either shut down or sell." However Bayway Refinery may have an advantage due to upgrades over the years. "They’re continuing to operate Bayway, and I think Bayway is a little more sophisticated," said Tom Kloza, the Wall Township-based chief oil analyst for the Oil Price Information Service. "A complex refinery can use cheaper, heavier sour crude." Because Bayway can handle a variety of types of crude, Kloza said, it probably could survive. "It’s in a strategic location, and for most of the years I’ve seen it make money," Kloza said. "I think most people take them at their word that they’re not making any money at their Pennsylvania refinery." Kloza said ConocoPhillips has a list of five or six refineries that are candidates for sale or closure. "I’ve heard varying reports of whether Bayway is on the list or not," Kloza said. "That is one that’s on the bubble."[94]

References

  1. ConocoPhillips. "US Refining as of March 31, 2011"
  2. ConocoPhillips. "US Refining as of March 31, 2011"
  3. Reuters. "Phillips 66 Bayway refinery workers to vote on contract Friday" September 7, 2012.
  4. NJ.com "ConocoPhillips' Bayway Refinery in Linden one of a dying breed on East Coast" by Elliot Caroom. November 11, 2007.
  5. Wikipedia. "Bayway Refinery" retrieved September 12, 2012.
  6. Wikipedia. "Bayway Refinery" retrieved September 12, 2012.
  7. Wikipedia. "Bayway Refinery" retrieved September 12, 2012.
  8. KRGV "New Jersey reaches $39M settlement with ConocoPhillips" May 25, 2017.
  9. Yahoo Finance. "Q1 2017 Phillips 66 Earnings Call" April 28, 2017.
  10. Tap into Union. "For Immed. Release: Phillips 66 to sponsor Union County falcon cam, education" March 24, 2017.
  11. New Jersey Suburban News. "Phillips 66 Bayway Refinery awards $30K grant for outdoor activities" January 9, 2017.
  12. Reuters. Phillips 66 Makes Ecomonic Run Cuts at Linden Amid Weak Margins
  13. Phillips 66. "Phillips 66 Reports Second-Quarter Earnings of $496 Million or $0.93 Per Share" July 29, 2016.
  14. Seeking Alpha. "Phillips 66 Reports Second-Quarter Earnings of $496 Million or $0.93 Per Share" July 29, 2016.
  15. Reuters. "Cruel summer for U.S. refiners as margins tank" July 7, 2016.
  16. Department of Energy. "Energy Assurance Daily" March 9, 2016
  17. Phillips 66. "Phillips 66 presents at the Bank of America Merrill Lynch 2016 Refining Conference" March 3, 2016.
  18. Department of Energy. "Energy Assurance Daily" February 3, 2016
  19. Department of Energy. "Energy Assurance Daily" October 20, 2015
  20. Department of Energy. "Energy Assurance Daily" October 13, 2015
  21. Reuters. "East Coast energy infrastructure braces for biggest post-Sandy test" by Jarrett Renshaw. October 2, 2015.
  22. Houston Business Journal. "Sandy knocks out power to Phillips 66 refinery" by Olivia Pulsinelli. October 30, 2012.
  23. Reuters. "UPDATE 6-Outages, floods hit two N.J. refineries; others restart" October 30, 2012.
  24. Phillips 66. "Hurricane Sandy Update #11" November 17, 2012.
  25. Fox Business. "Phillips 66: Bayway Refinery in Linden, N.J., Resumes Normal Operations" November 27, 2012.
  26. Argus Media. "Phillips 66 charts additional path to Bayway" September 10, 2015.
  27. Department of Energy. "Energy Assurance Daily" September 8, 2015
  28. Department of Energy. "Energy Assurance Daily" September 1, 2015
  29. Department of Energy. "Energy Assurance Daily" August 28, 2015
  30. Genscape. "Phillips Shuts 150,000 bpd FCC at Bayway refinery in NJ" August 28, 2015.
  31. Department of Energy. "Energy Assurance Daily" August 12, 2015
  32. Department of Energy. "Energy Assurance Daily" August 10, 2015
  33. Department of Energy. "Energy Assurance Daily" July 20, 2015
  34. Seeking Alpha. "Phillips 66's (PSX) CEO Greg Garland on Q1 2015 Results - Earnings Call Transcript" April 30, 2015.
  35. Union of Concerned Scientists. "Letter to Phillips 66" February 25, 2015.
  36. Department of Energy. "Energy Assurance Daily" February 24, 2015
  37. Department of Energy. "Energy Assurance Daily" February 23, 2015
  38. New Jersey. "Phillips 66 awards $29,000 grant to RWJ Rahway" January 29, 2015.
  39. Department of Energy. "Energy Assurance Daily" January 26, 2015
  40. United Steelworkers. US Department of Energy. "Energy Assurance Daily" November 19, 2014
  41. United Steelworkers. US Department of Energy. "Energy Assurance Daily" November 5, 2014
  42. Phillips 66. "PSX - Q3 2014 Phillips 66 Earnings Call" October 29, 2014.
  43. CBS New York. "Chemical Leak Contained At Refinery In Linden, NJ" October 20, 2014.
  44. Reuters. "Phillips 66 says adding railcars to move crude to coastal refineries" September 3, 2014.
  45. Reuters. "Phillips 66 says adding railcars to move crude to coastal refineries" September 3, 2014.
  46. New Jersey. "Trinitas Health Foundation honors Phillips 66 with Philanthropy Award" June 10, 2017.
  47. Trinitas regional Medical Center. "Phillips 66 to be Honored at Trinitas Gala" March 26, 2014.
  48. New Jersey. "Trinitas Health Foundation honors Phillips 66 with Philanthropy Award" June 10, 2017.
  49. Trinitas regional Medical Center. "Phillips 66 to be Honored at Trinitas Gala" March 26, 2014.
  50. New Jersey Star-Ledger. "38 organizations join forces to oppose proposed oil pipeline between Albany and Linden" by Ben Horowitz. May 20, 2014.
  51. New Jersey Star-Ledger. "38 organizations join forces to oppose proposed oil pipeline between Albany and Linden" by Ben Horowitz. May 20, 2014.
  52. Seeking Alpha. "Phillips 66's CEO Discusses Q1 2014 Results - Earnings Call Transcript" April 30, 2014.
  53. NewJersey.com "Oil pipeline proposed in North Jersey through Highlands" by Scott Fallon. April 4, 2014.
  54. Credit Suisse Global Energy Summit. "Transcript of Phillips 66 Presentation" by Greg Garland. February 12, 2014
  55. United Steelworkers. Refinery Events - (Dec. 13, 2013 through Dec. 19, 2013)
  56. Bloomberg. "Phillips 66 Bayway Plant Maintenance Said to Be Behind Schedule" by Eliot Caroom. November 8, 2013.
  57. United Steelworkers. Refinery Events - (Oct. 25, 2013 through Oct. 31, 2013)
  58. Seeking Alpha. "Phillips 66's CEO Discusses Q3 2013 Results - Earnings Call Transcript" October 30, 2013.
  59. Reuters. "Phillips 66 may buy more railcars to move crude to U.S. refineries-CEO" October 30, 2013.
  60. WSJ. "Phillips 66: Bayway Refinery Maintenance Concluded" by Rose Marton-Vitale. July 19, 2013.
  61. United Steelworkers. Refinery Events - (June 14, 2013 through June 20, 2013)
  62. WABC. "Safety at refinery called into question" by Jim Hoffer. April 26, 2013.
  63. WABC. "Safety at refinery called into question" by Jim Hoffer. April 26, 2013.
  64. New Jersey Star-Ledger. "Danger lurks at industrial workplaces, just ask Texas: Opinion" by Amy Goldsmith and Fletcher Harper. April 26, 2013.
  65. New Jersey Star-Ledger. "Danger lurks at industrial workplaces, just ask Texas: Opinion" by Amy Goldsmith and Fletcher Harper. April 26, 2013.
  66. United Steelworkers. Refinery Events - (April 19, 2013 through April 25, 2013)
  67. Bloomberg. "Phillips 66 Signs Deals to Boost Oil Deliveries by Pipe, Rail" by Eliot Caroom. March 20, 2013.
  68. Star Ledger. "American Red Cross receives $500,000 donation from Phillips 66" February 19, 2013.
  69. Seeking Alpha. "Phillips 66's CEO Discusses Q4 2012 Results - Earnings Call Transcript" January 30, 2013.
  70. Boston Globe. "Global Partners and Phillips 66 sign long-term crude oil contract" by Chris Ready. January 8, 2013.
  71. Businesswire "Global Partners and Phillips 66 Sign Long-Term Crude Transportation and Logistics Contract" January 8, 2013.
  72. Phillips 66. "Phillips 66 Announces 2013 Capital Program and Intent to Form MLP" December 13, 2012.
  73. Fox Business. "Phillips 66: Bayway Refinery in Linden, N.J., Resumes Normal Operations" November 27, 2012.
  74. Businessweek. "Fuel Declines in New York on Phillips 66 Bayway Startup" by Christine Harvey. November 26, 2012.
  75. Phillips 66. "Hurricane Sandy Update #11" November 17, 2012.
  76. Reuters. "Phillips 66 Bayway refinery leaks 7,700 gallons oil- Coast Guard" November 5, 2012.
  77. Reuters. "RPT-Phillips Bayway refinery could be weeks away from restart-source" November 2, 2012.
  78. Phillips 66. "Hurricane Sandy - Update #7. November 2, 2012
  79. Philips 66. "Phillips Third Quarter Earnings Conference" October 31, 2012
  80. Philips 66. "Phillips Third Quarter Earnings Conference" October 31, 2012
  81. Houston Business Journal. "Sandy knocks out power to Phillips 66 refinery" by Olivia Pulsinelli. October 30, 2012.
  82. Reuters. "UPDATE 6-Outages, floods hit two N.J. refineries; others restart" October 30, 2012.
  83. Reuters. "Phillips 66 begins shutdown of Bayway, NJ refinery" October 28, 2012.
  84. Phillips 66. "Hurricane Sandy - Update #2" October 28, 2012
  85. Reuters. "Northeast U.S. oil refineries prepare for Hurricane Sandy" October 26, 2012.
  86. Reuters. "Phillips 66 Bayway refinery workers ratify contract" September 10, 2012.
  87. Reuters. "Phillips 66 Bayway refinery workers to vote on contract Friday" September 7, 2012.
  88. NewJersey.com "Hazmat team called to Linden refinery for compressor problem" by Ryan Hutchins. August 27, 2012.
  89. Phillips 66. "Transcript for Phillips 66 second-quarter earnings call" August 1, 2012
  90. Reuters. "Phillips 66 profit jumps 14 pct, shares up" by Kristin Hays. August 2, 2012
  91. New Jersey Today. "Bayway Refinery Earns EPA’s ENERGY STAR® Certification" June 24, 2014.
  92. MarketWatch. "Phillips 66 Rings Opening Bell at New York Stock Exchange" May 2, 2012.
  93. Reuters. "Phillips 66 aims to run more shale oil" by Kristen Hays. May 1, 2012.
  94. NJ.com "ConocoPhillips' Bayway Refinery in Linden one of a dying breed on East Coast" by Elliot Caroom. November 11, 2007.



Master Index of Articles about Phillips 66

The North Tower and the South Tower, part of Phillips 66's Refinery Complex in Ponca City, contain over 250,000 square feet of Class A office space that is essentially unused. Research West contains another 230,000 square feet of unused Class A office space. Photo: Hugh Pickens
Ponca: A Core Asset. Phillips CEO Greg Garland told members of the Bartlesville Chamber of Commerce on August 27, 2013 that the refinery at Ponca is a 'core asset' of Phillips 66. The refinery in Ponca City "is making very good money for us," Garland told his Bartlesville audience. Garland added that he expects gas demands in the U.S. to decline by 20 percent in the next 10 years, but that demand for refined products in South America and Africa will more than offset that decline.

by Hugh Pickens, Ponca City Oklahoma


The purpose of this report is to provide a comprehensive overview of Phillips 66 that documents and explains the company's business strategy and execution of that strategy.

Major Sections of this report on Phillips 66 include:

Safety, Environment, Legal


Corporate


Strategic and Financial


Business Segments


Stock Market


Reference

Refining Business Segment


Increasing Profitability in Refining Business Segment


Detailed Look at Ponca City Refinery


Other Phillips Refineries


Other Locations

Personal tools