PBF Energy has completed the acquisition of Martinez refinery and related logistics assets from Equilon Enterprises, part of Shell, for $960 million.
PBF has increased its total throughput capacity to more than one million barrels per day through this acquisition and becomes the most complex independent refiner with a consolidated Nelson Complexity of 12.8.
Along with the transaction, PBF has entered into market-based, crude oil supply and product offtake agreements with Shell.
The 157,000 barrel-per-day, dual-coking Martinez refinery is located on an 860-acre site in the City of Martinez in California. The refinery is a high-conversion facility with a Nelson Complexity Index of 16.1, making it one of the most complex refineries in the US. The facility provides for operating and other synergies with PBF's Torrance refinery in Southern California.
A number of high-quality onsite logistics assets are included in the transaction, including a deep-water marine facility, product distribution terminals and refinery crude and product storage facilities with 8.8 million barrels of shell capacity.
PBF's chairman and CEO Tom Nimbley says: 'We are committed to maintaining the high operational standards of the refinery and, through continued safe, reliable and environmentally responsible operations, earning the privilege of being a respected member of the Martinez and Contra Costa County communities.
'The acquisition of Martinez is a significant strategic step for PBF as we expand our West Coast operations. Martinez is a top-tier asset, is a perfect complement to our existing assets and provides increased opportunities for PBF's West Coast operations to deliver value.'
Additionally, PBF Energy and Shell has agreed to jointly move forward with reviewing the feasibility of building a proposed renewable diesel project that would repurpose existing idled equipment at the Martinez refinery to create a renewable fuels production facility.
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