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COASTAL ANNOUNCES SUSPENSION OF REFINING PROCESSES IN KANSAS

 WICHITA, Kan., March 16 /PRNewswire/ -- Coastal Refining & Marketing, Inc. announced today it will suspend process operations beginning early this summer at its Wichita and El Dorado, Kan. refineries until business conditions improve. The company said it would idle its leased refinery in Augusta.
 Coastal said it intends to place the idled process equipment in a condition where it could be restarted should business conditions warrant, although some equipment could be moved if more economic uses could be found for it.
 Certain operations, such as terminal and product blending facilities, environmental projects and refinery catalyst rejuvenation services, will continue operating.
 "Coastal made this announcement after long, careful consideration of current business conditions as they affect smaller refineries," said James R. Paul, president and chief executive officer of The Coastal Corporation.
 "Suspending operations was the only prudent decision, given anticipated investments which would have been necessary to produce new fuels mandated by the Clean Air Act. Coastal supports and believes in environmental responsibility, but real environmentalism means more than shutting down American refining operations -- which comply with the law -- while allowing non-complying foreign firms to thrive. This policy exports not only America's environmental problem but also American jobs. Americans should demand that the playing field be leveled by requiring some form of restriction on cheap foreign imports that are causing the demise of America's refining industry.
 "Although Coastal will suspend certain process operations at its Kansas refineries, the company continues in its commitment to market petroleum products in Kansas and the Midwest. Our customers will see little difference in their dealings with Coastal, as we will remain a strong, reliable supplier in the region through our existing supply and distribution infrastructure."
 By year-end, staff will be reduced from the current 293 to approximately 60 employees. Some displaced employees will be offered jobs at other Coastal locations, as appropriate, and the company said it would do whatever was possible to help remaining employees find new jobs.
 The suspension at the Kansas refineries will not affect availability of Coastal products at branded retail outlets or to Coastal's other customers, since the company operates other refineries and terminals in the United States and maintains broad access to refined products from sources nationwide.
 Other subsidiaries of The Coastal Corporation in Kansas won't be affected, including Coastal Mart convenience stores, the Coastal Unilube distribution center, ANR Freight and various affiliated pipelines.
 Coastal last December confirmed industry reports that the company was considering changes in its refining and marketing assets and investments.
 The Coastal Corporation (NYSE: CGP) is a Houston-based energy holding company. Coastal has consolidated assets of more than $10 billion and subsidiary operations in natural gas marketing, transmission and storage, refining and marketing, oil and gas exploration and production, coal, chemicals, trucking and independent power production.
 -0- 3/16/93
 /CONTACT: Dave Scott, 713-877-3839, or Steve Eames, 713-877-6733, both of The Coastal Corporation/
 (CGP)


CO: Coastal Refining & Marketing, Inc. ST: Texas, Kansas IN: OIL SU:

WB-KW -- NY072 -- 6752 03/16/93 16:56 EST
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Publication:PR Newswire
Date:Mar 16, 1993
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