Tesoro to invest $1 billion to boost Wilmington refinery output
Just a month after completing the purchase of the former Shell Oil Co. refinery in Wilmington, San Antonio-based Tesoro Corp. told the Los Angeles Times that it plans to invest up to $1 billion in the facility to increase gasoline production and reduce down time.
The company estimates that the investments will boost production at the 308-acre facility by 20 percent. Located just north of the ports of Los Angeles and Long Beach, the facility can currently process up to 100,000 barrels of crude oil a day into 65,000 gallons of gasoline and 10,000 gallons of diesel fuel.
In an interview with the Times, Tesoro chief Bruce Smith said the firm would also increase production of California-formulated gasoline at the Wilmington refinery by ceasing production of fuel formulated for neighboring states. The Shell Oil practice resulted in 25 percent of the refinery's output being shipped out of state.
Tesoro last month completed the $1.76 billion purchase of the refinery, which also included a Shell distribution terminal at the port, petroleum stocks and nearly 300 Shell-branded gas stations in Southern California.
In a separate deal completed early last month, the firm also purchased 130 USA-branded stations in California for $273 million from USA Petroleum Co.
The two purchases have made Tesoro the second-largest refiner in the state.
