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Providing coverage of Alaska and northern Canada's oil and gas industry
January 2009

Vol. 14, No. 1 Week of January 04, 2009

Petro Star Valdez refinery hit by fire

Owner Arctic Slope Regional Corp. unsure of cause, when refinery can reopen; asks EPA to allow more North Pole production

Wesley Loy

Anchorage Daily News

Investigators searched Dec. 29 for the cause of a fire that seriously damaged the Petro Star Inc. refinery in Valdez.

More than 30 firefighters needed about two hours to put out the fire, which a refinery worker first reported at 10:43 p.m. Dec. 28, Valdez authorities said.

No one was hurt, but the fire has forced an indefinite shutdown of the plant until the full extent of the damage can be assessed, said Tara Sweeney, spokeswoman for Arctic Slope Regional Corp., which owns Petro Star.

The refinery draws crude oil from the nearby trans-Alaska pipeline to make jet fuel, home heating oil, marine diesel and other products.

Officials with the state Department of Environmental Regulation said an oil spill of about 55 gallons was found after the fire was put out but the oil was contained on the site.

Fire in refractory tower

A DEC report said the fire was in what’s known as a refractory tower at the refinery. At least one bystander took photos of sizable flames leaping from the plant.

The cause of the fire remained unknown Dec. 29, but a written statement from Arctic Slope said that “no foul play is suspected at this time.” The company also asserted that Petro Star has a good workplace safety record.

Fire brigades from Petro Star as well as the nearby Alyeska tanker port helped Valdez Fire Department firefighters battle the blaze in 10-degree weather and blowing snow.

Petro Star is trying to identify impacts on fuel customers in case the refinery stays shut down for an extended time, Sweeney said.

The refinery has a total work force of 22 people, she said.

In operation since 1993, the refinery produces about 550,000 gallons of products daily. Much of the output is jet fuel used at Anchorage’s international airport and at Elmendorf Air Force Base.

But the airport relies on Petro Star for less than 10 percent of its needs and Elmendorf has a backup fuel supply option, Arctic Slope said Dec. 29.

North Pole limited

Petro Star also operates another refinery at North Pole and it has fuel distribution centers in the major commercial fishing ports of Dutch Harbor and Kodiak.

Before the fire, much fuel was trucked north from the Valdez plant because of U.S. Environmental Protection Agency restrictions on the amount of diesel and heating oil the North Pole refinery can produce, Arctic Slope said.

In light of the fire, Petro Star plans to ask for federal relief so the North Pole refinery can make more fuel to meet Interior needs, the company said.

In Valdez, city officials reassured local residents they won’t run out of diesel, as the North Pole refinery can supply what the city needs.






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