Martinez (USA), June 13 - Neftegaz.RU. Equilon Enterprises LLC d/b/a Shell Oil Products US (Shell), a subsidiary of Shell has reached an agreement for the sale of Shell’s Martinez Refinery in California to PBF Holding Company, a subsidiary of PBF Energy, for $1.0 billion consideration plus the value of hydrocarbon inventory, crude oil supply and product offtake agreements, and other adjustments.
Shell reported this on June 11, 2019.
Martinez is a high-conversion refinery capable of capturing heavy/sour differentials. It produces a high percentage of on-spec clean product including premium gasoline, diesel and jet fuel. Martinez has a refining capacity of 157,000 barrels per day and a Nelson Complexity Index of 16.1.
The transaction covers the sale of Shell’s Martinez Refinery and adjacent truck rack and terminal in California. Shell’s associated branded fuel businesses, Aviation terminal, and Catalysts business in the area are not part of this transaction. The transaction is subject to closing conditions and regulatory approvals and is expected to close in 2019.
This divestment aligns with Shell’s strategy to reshape refining efforts towards a smaller, smarter refining portfolio focused on further integration with Shell Trading hubs, Chemicals, and Marketing.
Shell will maintain a significant presence in California with continued investments in its Upstream and New Energies business.
PBF Energy and Shell have 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.
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