Refiners hit brakes on growth

As project cost soar, companies are rethinking their plans to add capacity

Recently, Placid Refining Co. was ready to launch a major expansion of its oil refinery in Port Allen, La., when it received some unwelcome news.

In the year since it hatched the idea and ran the numbers, the cost of the project jumped by nearly 50 percent, said Gary Fuller, vice president and general manager at Placid.


The swift hike in costs meant the project was no longer affordable and had to be shelved. Though he remains optimistic it will happen, Fuller said the expansion has not been rescheduled.

Gasoline refiners big and small said they have delayed or canceled expansions amid a huge spike in costs of materials and labor, and an uncertain future demand for gasoline.

Houston Chronicle