Philadelphia Energy Solutions dramatically scaled back a large maintenance proje...
- Philadelphia Energy Solutions dramatically scaled back a large maintenance project in January in the same section of the refinery complex where a massive explosion occurred last week, according to three sources familiar with the plant’s operations.
Late Tuesday, sources familiar with the company’s plans said the refinery, the largest and oldest on the U.S. East Coast, would be shut indefinitely. Philadelphia Mayor Jim Kenney confirmed that on Wednesday. Planned capital projects, called turnarounds, are a core part of the refining business and help prevent against unexpected shutdowns and accidents. The work includes replacing valves, cleaning out units, replacing catalysts and other work that is typically scheduled and planned years in advance.
In mid-January, Philadelphia Energy Solutions manager of capital projects, Jim Demes, convened heads of the city’s building trades unions for lunch at a South Philadelphia eatery to tell them the $130 million plan, expected to start less than a week later, needed to be scaled back significantly. “Projects get scaled back. That’s not uncommon. But to do it just days before it was about to begin never happens. These things get planned years in advance, so I think investigators are going to look at the decision-making process,” said one building trade source.
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