PBF Energy Inc. has completed the sale of five steam methane reformer (SMR) hydrogen production plants to Air Products and Chemicals Inc. as part of the refiner’s strategic plan to navigate current extraordinary and volatile markets as a result of the COVID-19 crisis.
As part of the $530 million deal finalized on Apr. 20, PBF Energy entered into long-term off-take arrangements under which Air Products will deliver hydrogen supplies to three of the operator’s refineries, including the 157,000-b/d dual-coking refinery at Martinez, Calif., 155,000-b/d Torrance, Calif., refinery, and 190,000-b/d refinery in Delaware City, Del., PBF Energy said.
Sale of the SMR hydrogen production plants follows PBF Energy’s Mar. 30 announcement that it also was reducing 2020 cash outlays by more than $500 million through lowered capital and operating expenses, dividend suspension, and other deferrals as part of its response to market impacts resulting from the global pandemic.
PBF Energy—which also owns and operates a 189,000-b/d refinery in Chalmette, La., 170,000-b/d refinery in Toledo, Ohio, and 180,000-b/d refinery in Paulsboro, NJ—completed its purchase of the Martinez refinery and integrated logistics assets from Royal Dutch Shell PLC earlier this year (OGJ Online, Feb. 3, 2020).
