Refining Community Logo

RE: NuStar Energy LP to buy CITGO's asphalt operations

Home Forums Refining Community Refinery News NuStar Energy LP to buy CITGO's asphalt operations RE: NuStar Energy LP to buy CITGO's asphalt operations


Charles Randall

Here are a couple of updates on the Sale of CITGO’s Asphalt refineries in Paulsboro & Savannah to NuStar Energy for $550 million for the 104 MBD combined capacity (& terminals) – which works out to be $4325/Bbl Capacity. About 1/4 of the current replacement cost on larger/complex Refineries and while these are very simple topping units; they are very large & more integrated into the asphalt side of the business with tankage and terminals as opposed to some of the normal Refineries asphalt units or asphalt topping refineries. The capacity cost on these refineries is still significantly below the replacement values.
The purchase moves NuStar into top producer slot on the US East Coast as largest Asphalt Refiner. And since NuStar is already the worlds 2nd largest independent liquid terminal operator there could be a logistical advantage for asphalt imports. PDVSA supplied about ~half of the demand for these plants with Boscan crude.
One of the interesting things looking at asphalt refineries – is the difference between the EIA US Refinery survey compared to the OGJ US Refinery survey. The EIA has 143 US refineries listed, while the OGJ has 131 US refineries listed and it has been ~this way since 2003.  Most of the difference is the 2002 & 2003 OGJ de-listed 13 US refineries that were asphalt topping units which are still operating while the EIA still includes them. And adding more confusion to issue – the OGJ has added several global refineries to its list that are simple asphalt topping refineries.

Refining Community