The Delaware City Refinery owner PBF Energy is now planning to make extensive use of rail cars to receive fuel oil and will postpone a $1 billion clean fuels project, DelawareOnline reported on Saturday.
The website reported a $50 million to $60 million project is planned to shift a large chuck of the company’s crude oil delivery from ships to rail cars. It reflects a major shift in the refining market, with a growing supply of crude oil coming rom Canada and North Dakota, rather than overseas markets such as Africa or the Middle East.
East Coast refineries are an attractive option, due to built-in demand for gasoline in the region. Refiners have also been aided by the shale gas boom in Pennsylvania that the cost of the natural gas used in converting crude oil to gasoline and other products.
The increased North American production cannot entirely be handled by pipelines, leading to the use of rail cars. As a result, long trains of tank cars have become a common sight in the Midwest.
The refine had been asking for a speed-up consideration of permitting required for the clean fuels expansion. – Doug Rainey