BP's Whiting Refinery in Indiana Faces Delays in Return to Service

BP's Whiting refinery in Indiana has delayed the restart of key units, affecting fuel prices in the Chicago market. The refinery, which is the largest in the U.S. Midwest, is expected to resume operations soon.

BP's Whiting refinery in Indiana has faced delays in returning to service following maintenance, according to industry sources. The refinery, which has a capacity of 435,000 barrels per day, began a planned turnaround in late September and started the restart of its units in early November. However, issues have arisen with at least two critical units during the startup process, specifically the 250,000-barrel-per-day sour crude distillation unit and the 102,000-barrel-per-day coker unit. These units are anticipated to be back online within the week.

The delays have already had a noticeable impact on fuel prices in the Chicago market, with gasoline prices reportedly climbing by at least 11 cents per gallon since mid-November. Traders have been forced to seek alternative sources of gasoline and diesel as the refinery's output remains compromised. The Chicago-market CBOB gasoline was trading at a slight discount to futures, a shift from a more significant discount seen previously.

In response to the operational challenges, BP issued an alert regarding flaring at the Whiting facility, which is a safety measure to manage excess gases during maintenance or operational disruptions. This flaring concluded on Monday, according to a BP spokesperson.

The Whiting refinery, the largest in the U.S. Midwest, plays a crucial role in the regional fuel supply. BP has faced operational challenges in the past, including a month-long shutdown earlier this year due to a plantwide power outage. As the company works to resolve the current issues, the market will be closely watching for updates on the refinery's status and its implications for fuel prices in the region.

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