VGO

Also known as: vacuum gasoil

VGO is one of the two outputs of the vacuum distillation tower (along with vacuum resid). VGO is the lighter material of the two.

The primary use of VGO is as feed to cracking units such as the FCC or the hydrocracker. These units upgrade VGO into more valuable products, namely gasoline and diesel.

If not upgraded, VGO is blended into residual fuel oil. However, this is fairly rare since the value of VGO is much greater as a feed into upgrading. Often, if a refinery lacks enough cracking to upgrade the VGO it generates, it will sell this as an intermediate to another refinery, rather than downgrading it by blending into residual fuel oil.

VGO is often sub-divided into a lighter and heavier fraction called LVGO and HVGO, respectively.

The Refinery Reference Desk includes content derived from our industry experts as well as from public data sources such as company websites. Nothing herein is intended to serve as investment advice. This material is based on information that we believe to be reliable and adequately comprehensive, but we do not represent that such information is in all respects accurate or complete. McKinsey Energy Insights does not accept any liability for any losses resulting from use of the content.



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