Valero refinery in Aruba to convert to crude and refined products terminal

Valero Refining Company-Aruba N.V., a subsidiary of Valero Energy Corp., has notified employees of the Valero Aruba Refinery of its decision to further reduce operations and reorganize the site as a crude and refined products terminal.
The company had previously suspended refining operations because it believes that with its deep water and smaller berths, the terminal will have the flexibility to load very large crude ships, and it could thus become a world-scale crude and refined products terminal. Valero also plans to offer storage facilities to its customers.
It is believed that Aruba’s proximity to growing markets and the business-friendly political environment in the country would make it an ideal location for the new terminal operations. The move, however, would require a considerably smaller workforce, and reorganization is expected to be completed by the end of 2012.
Valero will still continue to supply jet fuel, gasoline, diesel, and fuel oil to the island, even as it engages in third-party terminal services. It also plans to maintain the refinery in a state that would allow a restart in case the company becomes successful in the pursuit of alternatives for the refinery prior to the transition to terminal operations.
Valero, a Fortune 500 company, says it will continue to work with the government to discuss programs that, if successful, could result in a suspension of the workforce reduction. (September 6, 2012)