REFINING
Our HOVENSA joint venture refinery in the United States Virgin Islands is jointly owned by Hess and Petroleos de Venezuela S.A. In January 2011, HOVENSA announced its decision to reduce crude distillation capacity to 350,000 barrels per day from 500,000 barrels per day, by shutting down older, less efficient units. This reconfiguration is expected to improve the refinery's competitive position and reliability. HOVENSA's 150,000 barrel per day fluid catalytic cracking unit (FCC) and the 58,000 barrel per day delayed coking unit are not affected by this change. Gross crude runs at the refinery averaged 390,000 barrels per day in 2010 versus 402,000 barrels per day in 2009. Crude runs were below 2009 levels primarily as a result of the weak margin environment, the planned turnaround of the refinery's FCC unit and unplanned maintenance.
Our Port Reading, New Jersey, FCC facility located near New York Harbor produces gasoline and fuel oil primarily for markets in the Northeast United States. The facility averaged feedstock runs of about 55,000 barrels per day in 2010 versus 63,000 barrels per day in 2009. Feedstock runs were lower in 2010 primarily as a result of a planned turnaround of the FCC unit.
SUPPLY & TERMINALS
Hess operates a network of 20 refined product terminals on the East Coast of the United States, as well as an oil storage facility in St. Lucia. Our East Coast terminals provide the company a competitive advantage in the supply of refined products to our Retail and Energy Marketing businesses.
In 2010, the Hess terminal in Port Reading, New Jersey started marketing marine diesel fuel and our marine bunker fuels business continued to show profitable growth. Third-party utilization of our storage tanks increased during the year, generating incremental revenue for the Hess terminal network.
ENERGY MARKETING
Hess Energy Marketing is a major supplier of fuel oil, natural gas and electricity to commercial, industrial and utility customers in the Eastern United States. In 2010, natural gas and electricity volumes remained strong and margins improved. Customer relationships, multicommodity product offerings and new lines of business position Hess Energy Marketing for future growth.
In 2010 construction began in New Jersey on the Bayonne Energy Center, a 512-megawatt, natural gas fueled electric power plant jointly owned by Hess Corporation and ArcLight Capital Partners. Once operational in 2012, the facility will generate enough electricity to power approximately 500,000 homes in the New York City area.
RETAIL MARKETING
Hess is the leading independent gasoline convenience store retailer on the East Coast with 1,362 Hess branded locations. Annual convenience store revenues in 2010, excluding petroleum products, were approximately $1.2 billion, an increase of 4 percent from 2009. In addition to convenience store sales growth, Hess Retail Marketing reduced overall expenses and delivered record safety performance.
During the year, the company opened three new HESS EXPRESS locations and expanded its Dunkin' Donuts offering to a total of 454 Hess locations.
Our HOVENSA joint venture refinery in the United States Virgin Islands is jointly owned by Hess and Petroleos de Venezuela S.A. In January 2011, HOVENSA announced its decision to reduce crude distillation capacity to 350,000 barrels per day from 500,000 barrels per day, by shutting down older, less efficient units. This reconfiguration is expected to improve the refinery's competitive position and reliability. HOVENSA's 150,000 barrel per day fluid catalytic cracking unit (FCC) and the 58,000 barrel per day delayed coking unit are not affected by this change. Gross crude runs at the refinery averaged 390,000 barrels per day in 2010 versus 402,000 barrels per day in 2009. Crude runs were below 2009 levels primarily as a result of the weak margin environment, the planned turnaround of the refinery's FCC unit and unplanned maintenance.
Our Port Reading, New Jersey, FCC facility located near New York Harbor produces gasoline and fuel oil primarily for markets in the Northeast United States. The facility averaged feedstock runs of about 55,000 barrels per day in 2010 versus 63,000 barrels per day in 2009. Feedstock runs were lower in 2010 primarily as a result of a planned turnaround of the FCC unit.
SUPPLY & TERMINALS
Hess operates a network of 20 refined product terminals on the East Coast of the United States, as well as an oil storage facility in St. Lucia. Our East Coast terminals provide the company a competitive advantage in the supply of refined products to our Retail and Energy Marketing businesses.
In 2010, the Hess terminal in Port Reading, New Jersey started marketing marine diesel fuel and our marine bunker fuels business continued to show profitable growth. Third-party utilization of our storage tanks increased during the year, generating incremental revenue for the Hess terminal network.
ENERGY MARKETING
Hess Energy Marketing is a major supplier of fuel oil, natural gas and electricity to commercial, industrial and utility customers in the Eastern United States. In 2010, natural gas and electricity volumes remained strong and margins improved. Customer relationships, multicommodity product offerings and new lines of business position Hess Energy Marketing for future growth.
In 2010 construction began in New Jersey on the Bayonne Energy Center, a 512-megawatt, natural gas fueled electric power plant jointly owned by Hess Corporation and ArcLight Capital Partners. Once operational in 2012, the facility will generate enough electricity to power approximately 500,000 homes in the New York City area.
RETAIL MARKETING
Hess is the leading independent gasoline convenience store retailer on the East Coast with 1,362 Hess branded locations. Annual convenience store revenues in 2010, excluding petroleum products, were approximately $1.2 billion, an increase of 4 percent from 2009. In addition to convenience store sales growth, Hess Retail Marketing reduced overall expenses and delivered record safety performance.
During the year, the company opened three new HESS EXPRESS locations and expanded its Dunkin' Donuts offering to a total of 454 Hess locations.