PBF Energy Inc. is building up its presence on the left coast by $1 billion to purchase the 157,000 barrel-per-day Martinez refinery in the San Francisco Bay area and related assets, from a unit of petroleum giant Shell.
The sale by Equilon Enterprises boosts PBF’s total capacity to more than one million barrels per day and gives the company further access to a lucrative market.
PBR is based in northern New Jersey and got its start in the recession of a decade ago by acquiring the Delaware City refinery.
Under the agreement, first quarter 2020 turnaround costs and certain additional future capital expenses will be funded by the seller The Martinez transaction is expected to close in the second half of 2019, subject to customary closing conditions and regulatory approvals.
“The acquisition of the high-complexity, dual-coking Martinez refinery is a significant strategic step for PBF as we expand our West Coast operations and increase our total throughput capacity to more than one million barrels per day,” said PBF CEO Tom Nimbley. “Martinez is one of the most complex refineries in the country and a top-tier asset. This acquisition will provide increased opportunities for PBF’s expanding West Coast operations to deliver enhanced value and returns in the favorable markets ahead including tangible synergies for our two-refinery West Coast system. We look forward to welcoming Martinez’s highly-motivated and professional workforce to the PBF family, and are committed to continuing their tradition of safe, reliable, environmentally responsible operations, as well as their outstanding community partnership.”
The Martinez refinery is located on an 860-acre site in the City of Martinez, 30 miles northeast of San Francisco.
The refinery is a 157,000 barrel per day, dual-coking facility and is one the most complex refineries in the United States. The complexity allows the refinery to be flexible in accepting various types of crude oil.
The facility provides operating and other synergies with PBF’s Torrance refinery located in Southern California, a release stated.
In addition to refining assets, the transaction includes a number of logistics assets including a deep-water marine facility, product distribution terminals and refinery crude and product storage facilities with approximately 8.8 million barrels of capacity.
PBF Energy and Shell have also 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 detailed feasibility review and planning for this project is expected to occur after closing of the acquisition, the release disclosed.
