A subsidiary of independent New Jersey-based refiner PBF Energy has reportedly bought the Martinez refinery from Equilon Enterprises LLC (doing business as Shell Oil Products US), for £0.92 billion.
With the acquisition, PBF increased its total throughput capacity to more than one million barrels per day (Mmbpd). In conjunction with the deal, PBF has also entered into market-based, crude oil supply and product offtake agreements with Shell.
The Martinez refinery is a 157,000 barrel-per-day, dual-coking facility, located on an 860-acre site in the City of Martinez, which is 30 miles northeast of San Francisco, California.
It provides for operating and other synergies with PBF’s Torrance, California refinery, which is roughly 400 miles to the south.
Tom Nimbley, PBF’s Chairman and CEO said: “The acquisition of Martinez is a significant strategic step for PBF as we expand our West Coast operations”.
PBF financed the transaction with a combination of cash, including proceeds from its subsidiaries’ £0.77 billion private debt offering in January 2020, and borrowings under its existing revolving credit facility.
In addition to refining assets, the transaction includes a number of onsite 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. This would repurpose existing idled equipment at the Martinez refinery in order to create a renewable fuels production facility.
For more information visit www.pbfenergy.com