US company Vertex Energy has bought Shell’s 90,000 bpd Mobile Chemical LP Refinery in Alabama, US.
Vertex, a specialty refiner of alternative feedstocks and marketer of high-purity petroleum products, will pay US$75 million (€61.5 million) plus the value of the hydrocarbon inventory, which will be calculated on closing but is currently estimated at US$65-85 million. The company reached agreement with Shell subsidiaries Equilon Enterprises, Shell Oil Company and Shell Chemical on 26th May 2021.
The deal includes the refinery and its associated logistics infrastructure, including product racks, a dock and the Blakeley Island Terminal. The refinery’s products include LPG, diesel fuel, jet fuel, gasoline, low-sulphur vacuum gas oil (VGO)/heavy olefin feed and benzene. Shell and Vertex have crude supply and product offtake agreements to allow Shell to continue to support its customers in the region. Refinery employees will be retained.
Shell is currently implementing a strategy to reduce its global refinery footprint to core sites that are integrated with its trading hubs, chemicals plants and marketing businesses, as it seeks to produce more low-carbon fuels and specialty chemicals. The Vertex refinery sale is the third in recent weeks. HollyFrontier has bought the Puget Sound refinery in Anacortes, Washington, US, while Pemex unexpectedly bought out Shell’s share of the Deer Park refinery in Texas, US.
‘The sale of the Mobile refinery shows that we are making good progress delivering on our manufacturing strategy,’ says Robin Mooldijk, Shell’s EVP for manufacturing. ‘We’re becoming better positioned to deliver resilient returns and meet the increasingly diverse needs of our customers.’