In California, PBF Energy Inc. announced that its subsidiary completed the acquisition of Martinez refinery, and related logistics assets, from Equilon Enterprises LLC d/b/a Shell Oil Products US. With the acquisition, PBF’s increased its total throughput capacity to more than one million barrels per day and becomes the most complex independent refiner with a consolidated Nelson Complexity of 12.8.
PBF Energy and Shell have agreed to jointly move forward with reviewing the feasibility of building a proposed renewable diesel project which would repurpose existing idled equipment at the Martinez refinery to create a renewable fuels production facility.
The purchase price for the assets was $960.0 million plus the value of hydrocarbon inventory. In conjunction with the transaction, PBF has entered into market-based, crude oil supply and product offtake agreements with Shell. PBF financed the transaction with a combination of cash, including proceeds from its subsidiaries’ $1 billion private debt offering in January of 2020, and borrowings under its existing revolving credit facility.
Category: Producer News