Valero says plans significant '09 turnarounds

HOUSTON, Oct 28 (Reuters) - Top U.S. refiner Valero Energy Corp (VLO.N: Quote, Profile, Research, Stock Buzz) on Tuesday said it planned significant turnarounds in 2009, with projects planned at two of its Texas refineries.

The company also said it had scaled back capital spending in 2008 and 2009 by deferring projects until 2010 and 2011.

Valero said it would carry out a heavy oil cracker overhaul at its 340,000 barrel per day (bpd) Corpus Christi, Texas, refining complex in January. The company also plans a crude unit and coker turnaround at its 245,000 bpd Texas City, Texas, refinery in February.

"As it turns out, 2009 should be a more significant year for turnaround activity," said Chief Operating Officer Rich Marcogliese.

The company also plans coker drum replacement in June at its 250,000 bpd St. Charles, Louisiana refinery, he said.

Valero also plans an overhaul of its gasoline-producing catalytic cracking unit at the 210,000 bpd Delaware City refinery.

Valero has cancelled a delayed coker project at its 245,000 bpd Port Arthur, Texas, refinery, but the company may revive it at a later time, Marcogliese said.

The company is pushing planned cat cracker work at its 195,000 bpd Memphis, Tennessee, refinery from 2009 to 2011 and reseting a hydrocracker project at Port Arthur from 2010 to 2011.

About deferring the Port Arthur hydrocracker project, Chairman and Chief Executive Bill Klesse said a major expanison at the nearby Motiva Enterprises LLC 285,000 bpd refinery was tying down many of the local craft workers and the delay would help the company manage its cash flow.

"We also have an extremely large turnaround at Port Arthur next year," Klesse said.

The Port Arthur overhaul is scheduled for the end of 2009 and early 2010.