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The Honolulu Advertiser
Posted on: Tuesday, February 19, 2008

Tesoro refinery doesn't expect fuel shortage

By Gordon Y.K. Pang
Advertiser West O'ahu Writer

Hawaii news photo - The Honolulu Advertiser

The Tesoro plant is one of only two oil processors in Hawai'i; the other is operated by Chevron Hawaii.

RICHARD AMBO | The Honolulu Advertiser

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KALAELOA — Production at the Tesoro Hawaii refinery at Campbell Industrial Park should resume by the end of the week as employees work to restore processing units disabled by a fire at one of the units.

The fire is tied to a facilitywide power failure late Saturday night — the second power outage in the last four months.

The production stoppage should not affect the supply of fuel products in the state because the refinery has a tank farm with at least a week's worth of reserves, said Nathan Hokama, a Tesoro spokesman.

"The tentative plan is to have all the units up by the end of the week and once that happens, production can resume," Hokama said yesterday.

An investigation has begun into what caused the electrical power failure at the plant. The failure is blamed for starting the fire at one of the refinery's processing units at about 10:30 p.m. Saturday.

Tesoro has not yet been able to pinpoint the exact cause of the electrical power failure, Hokama said.

There were no injuries or evacuations as a result of the accident, although Honolulu Fire Department firefighters were called in to help contain the blaze and stood by through the early morning hours Sunday.

On Nov. 4, a power failure caused by a storm triggered a shutdown at the plant. Most of the units were brought back online within a week. The exception was the refinery's catalytic reformer unit, which was shut down for just over a month, Hokama said. That shutdown affected gasoline production, and the company had to buy gas from other sources.

The Tesoro plant processes about 95,000 barrels of crude oil daily.

The plant is one of only two oil processors in Hawai'i. The other, which is also located at Campbell Industrial park, is operated by Chevron Hawaii.

Reach Gordon Y.K. Pang at gpang@honoluluadvertiser.com.