Question-and-Answer Session
[Operator Instructions]. Your first question comes from the line of Mark Flannery of Credit Suisse.
Mark Flannery - Credit Suisse
Yes, good morning. I would like to talk about the CapEx reduction if possible. Can you give us an idea of what you will not be doing now in 2008 and 2009? Are we talking about project cancellations, deferrals, or are we talking about an extra hard look at maintenance. Maybe just a little color on what's not going to happen?
Rich Marcogliese - Executive Vice President and Chief Operating Officer
Well, sure Mark, this is Rich Marcogliese. I can give you a sense for that. I would say the bulk of what we are doing our project deferrals although there have been a couple of project cancellations that we can never... on the cancellation side, we originally included a today new delayed coker at our Port Arthur Refinery.
We still think that this with a long range vision for the plant but we've actually deleted that project from our capital budget. In addition, associated with our MSAT 2 project, this is the mobile source air toxics. So we had anticipated Benzene recovery plus the production of paraxylene. We have deleted the paraxylene portion of that project. And I will now go with centralized Benzene extraction and marketing at our Saint Charles Refinery.
So I think those two would be representative of things that we have decided to take out of the capital budget. Beyond that we have a number of project deferrals that I would share. It includes pushing off a planned crude [ph] or revamp at our Memphis Refinery from 2009 to 2011. We're going to push back the hydrocracker project to Port Arthur from 2010 to 2011. There are also plans for upgrades that are... Quebec Refinery primarily the asphalting unit and a sulfur plant that will be put off sometime within the next five years as will be a products pipeline from Quebec to Montreal.
So what we have got here is a combination of a couple of deletions from our capital budget but primarily it represents a number of deferrals on discretionary investments.
Mark Flannery - Credit Suisse
Right. Maybe I could just have a related follow-up which is... how close do we getting to minimum necessary CapEx levels now? Would you say... in other words, how much more is there in that to defer if you found that to be necessary?
- To read the full transcript on Seeking Alpha, click here »
