Phillips 66 Says Gulf Coast Refineries Can Process 100,000 bpd of Venezuelan Crude

Phillips 66 says two of its U.S. Gulf Coast refineries could process up to 100,000 bpd of Venezuelan crude if supplies become available, underscoring the region’s ability to handle heavier grades.

(Reuters) — Refiner Phillips 66 can run Venezuelan crude at two U.S. Gulf Coast refineries as supplies become available, Chief Financial Officer Kevin Mitchell said on a conference call on Jan. 6.

(Image source: Global Energy Infrastructure, Petroleum Economist, PDVSA)

Speaking at the Goldman Sachs Energy, CleanTech & Utilities Conference, Mitchell said its Lake Charles and Sweeny refineries in Texas have the capacity to process 100,000 barrels per day of Venezuelan crudes.

President Donald Trump said the U.S. would "take control" of Venezuela after U.S. forces arrested Venezuelan President Nicolás Maduro on Saturday, a step that could open the door for U.S. energy companies to seek access to the country's vast oil reserves.

Venezuelan crude is a heavy sour grade with high sulfur content, making it suitable for producing diesel and heavier fuels, albeit at lower margins compared with other grades, particularly those from the Middle East.