Thursday, July 2, 2015
PBF Energy Inc. (Parsippany, N.J.) said June 18 that it has signed an agreement to acquire 100% of Chalmette Refining LLC, including its 189,000-bbld refinery in Chalmette, La., from joint-venture owners ExxonMobil and PDV Chalmette LLC, a subsidiary of state-owned Petróleos de Venezuela SA. The agreement includes related logistics and chemical assets. With the $322-million acquisition, PBF Energy will increase its throughput capacity to more than 725,000 bbld. PBF operates oil refineries and related facilities in Delaware City, Del.; Paulsboro, N.J.; and Toledo, Ohio.
“The acquisition of the Chalmette refinery, and its associated logistics assets, represents a significant step in the strategic growth of PBF Energy and PBF Logistics,” said Tom Nimbley, PBFs CEO. “Upon completion, we will have increased our refining capacity by 35% and added meaningful Gulf Coast assets to our businesses. We will have operations in the Gulf Coast, Mid-Continent, and East Coast and have diversified and increased our commercial footprint and flexibility. We are committed to the continued safe and environmentally responsible operation of the facility and look forward to welcoming Chalmette’s well-trained and professional workforce to the PBF family.”
“This decision is the result of a strategic assessment of the site and how it fits with our large U.S. Gulf Coast refining portfolio,” added Jerry Wascom, president of ExxonMobil Refining & Supply Co. “We regularly adjust our portfolio of assets through investment, restructuring, or divestment consistent with our overall global and regional business strategies. ExxonMobil remains committed to doing business in Louisiana through ongoing operations at the Baton Rouge refinery and chemical plants, the development and production of oil and natural gas resources, and sales of fuels and lubricants. All of these businesses are unaffected by this agreement.”
In addition to the refining assets, the transaction includes 100% ownership of the MOEM Pipeline, providing access to the Empire Terminal, as well as the CAM Connection Pipeline, providing access to the LOOP facility through a third-party pipeline. The transaction also includes 80% ownership in both the Collins Pipeline Co. and T&M Terminal Co. in Collins, Miss., which provide a significant clean products outlet for the refinery via the Plantation and Colonial pipelines. The purchase also includes a marine terminal capable of importing waterborne feedstocks and loading or exporting finished products; a clean products truck rack that provides access to local markets; and a crude and product storage facility with about 7.5 MMbbl of capacity.
“The acquisition of the Chalmette refinery, and its associated logistics assets, represents a significant step in the strategic growth of PBF Energy and PBF Logistics,” said Tom Nimbley, PBFs CEO. “Upon completion, we will have increased our refining capacity by 35% and added meaningful Gulf Coast assets to our businesses. We will have operations in the Gulf Coast, Mid-Continent, and East Coast and have diversified and increased our commercial footprint and flexibility. We are committed to the continued safe and environmentally responsible operation of the facility and look forward to welcoming Chalmette’s well-trained and professional workforce to the PBF family.”
“This decision is the result of a strategic assessment of the site and how it fits with our large U.S. Gulf Coast refining portfolio,” added Jerry Wascom, president of ExxonMobil Refining & Supply Co. “We regularly adjust our portfolio of assets through investment, restructuring, or divestment consistent with our overall global and regional business strategies. ExxonMobil remains committed to doing business in Louisiana through ongoing operations at the Baton Rouge refinery and chemical plants, the development and production of oil and natural gas resources, and sales of fuels and lubricants. All of these businesses are unaffected by this agreement.”
In addition to the refining assets, the transaction includes 100% ownership of the MOEM Pipeline, providing access to the Empire Terminal, as well as the CAM Connection Pipeline, providing access to the LOOP facility through a third-party pipeline. The transaction also includes 80% ownership in both the Collins Pipeline Co. and T&M Terminal Co. in Collins, Miss., which provide a significant clean products outlet for the refinery via the Plantation and Colonial pipelines. The purchase also includes a marine terminal capable of importing waterborne feedstocks and loading or exporting finished products; a clean products truck rack that provides access to local markets; and a crude and product storage facility with about 7.5 MMbbl of capacity.
