Viva Energy (ASX:VEA) makes moves to shut Geelong Refinery

Company News

by Rachael Jones

Viva Energy (ASX:VEA) has started preparations to shut down the Geelong Refinery’s Residual Catalytic Cracking Unit (RCCU) and associated processing units.

They will be closed together with the smaller of the Crude Distillation Units, with effect from early May 2020.

The Refinery’s main Crude Distillation Unit and all other processing units will continue to operate.

Over the last month, the Refinery has taken steps to operate processing units at reduced rates as a result of the measures in place to manage Covid-19. 

The Company expects refining intake to be reduced to approximately 2.5 Million Barrels per month, subject to normal refining optimisation decisions.

Taking into account the cost efficiencies that would flow from not operating the units, the incremental financial impact of this action is expected to be immaterial in the current refining margin environment.

The Company expects no disruption to fuel supply.

Shares in Viva Energy (ASX:VEA) are trading 0.4 per cent higher at $1.36.
 

Rachael Jones

Finance News Network
Rachael comes to FNN after working for Fairfax Media covering international breaking news, including the global economy and politics. She joined FNN in February 2018. She has reported on Australia’s finance news for various organisations since 2000 and has also interviewed a number of key business players, including Bill Gates. Rachael has also worked across a number of countries, including the UK and the US.