Colorado refinery shutdown, state of emergency declared

Suncor, which operates the only oil and gas refinery in Colorado, shut down its Commerce City, Colo., refinery on Dec. 24, and may not be back online until March, according to local outlets.

The closure of the refinery prompted Colorado Gov. Jared Polis to issue a state of emergency while easing regulations for drivers of commercial motor vehicles transporting fuel to reduce any potential supply chain issues due to the Suncor refinery shutdown.

This regulatory relief includes but is not limited to trucking hours, truck weight limits and streamlined pipeline transportation regulations, said the office of the Colorado governor’s website.

As a result of the declaration, the state’s emergency operations plan is activated, and its office of emergency management is directed to “take necessary and appropriate actions to assist the affected jurisdiction with their response, recovery and mitigation efforts,” said the website.

A Suncor news release said extreme and record-setting weather lead to equipment damage at Suncor’s Commerce City refinery.

“Consistent with our operation excellence and safe operating practice, on Dec. 24 it was determined that the entire facility would be shut down and put into safe mode to allow for the inspection of all units and repair of the damaged equipment,” the news release said.

Suncor’s website says the Commerce City refinery processes approximately 98,000 barrels per day and contributes $2.5 billion to the state’s economy annually while providing around 5,000 direct and indirect jobs. In addition, nearly 95% of Suncor’s products processed in Commerce City are sold within the state.

Local fuel prices

The latest weekly fuel reports, released on Jan. 2, showed a decline in average diesel prices within the Rocky Mountain region, which includes Colorado.

ProMiles.com showed an 8.4-cent decline to the Rocky Mountain’s average price per gallon ($4.685), while the Energy Information Administration reported a drop of 1.5 cents to $4.73 per gallon.

AAA’s daily report for Colorado on Jan. 5, also showed the current average price for diesel in Colorado is down to $4.299, from $4.305 last week.

However, several local news outlets are reporting industry experts expect fuel prices to begin to increase in the near future.

Suncor said that based on its current assessment, the Canadian company is anticipating a return to full operations in Commerce City by late in the first quarter of 2023. LL

More Land Line coverage of Colorado.