PBF Energy inks deal for Louisiana refinery, logistics assets

PBF Holding Co. LLC, a subsidiary of PBF Energy Inc., Parsippany, NJ, has entered an agreement with ExxonMobil Corp. and Petroleos de Venezuela SA (PDVSA) to purchase 100% of Chalmette Refining LLC, an ExxonMobil-PDVSA joint venture that operates a 189,000-b/d refinery in Chalmette, La., outside of New Orleans.

The deal, which includes the refinery as well as related logistics assets, amounts to $322 million, plus inventory and working capital that will be valued at closing, PBF Energy said.

In addition to the dual-train coking refinery, which can process both light and heavy crudes, PBF Energy will acquire the following Chalmette Refining assets as part of the transaction:

• 100% ownership of the MOEM pipeline, which provides access to the Empire terminal, as well as to the CAM Connection pipeline, which provides access to the Louisiana Offshore Oil Port (LOOP) through a third party pipeline.

• 80% ownership interest in both Collins Pipeline Co. and T&M Terminal Co., in Collins, Miss., which together provide the Chalmette refinery access for its clean-product production to reach the Plantation and Colonial pipelines.

• A marine terminal equipped to handle imports of waterborne feedstocks as well as loading or unloading of finished products.

• A clean-products truck rack for access to local markets.

• A shell capacity of about 7.5 million bbl in crude oil and product storage.

The deal, which is due to close by yearend pending regulatory approvals, will boost PBF Energy’s total refining capacity by 35% to an overall 725,000 b/d, the company said.

PBF Energy currently operates three US refineries, including a 190,000-b/d refinery in Delaware City, Del., a 180,000-b/d refinery in Paulsboro, NJ, and a 170,000-b/d refinery in Toledo, Ohio.

ExxonMobil’s decision to shed its interest in the Chalmette venture resulted from a strategic assessment of the site and how it fits with the company’s existing US Gulf Coast refining portfolio, according to Jerry Wascom, president of ExxonMobil Refining & Supply Co.

The company, however, remains committed to its other businesses in Louisiana, including its 502,500-b/d Baton Rouge refinery and integrated chemical plants, as well as ongoing development and production of oil and natural gas resources, Wascom said.

Contact Robert Brelsford at [email protected].