October 10, 2011 at 10:34 am #2100
Refinery exploring billion-dollar expansion
4:54 PM, Oct. 7, 2011
A refining industry legend helped to mark the Delaware City Refinery’s successful restart today, and said that a billion dollar expansion is under study for the same site during a brief ceremony near the heart of the 210,000 barrel-per-day operation.
PBF Holding Co. LLC chairman Thomas D. O’Malley said that company officials and investors are exploring prospects for the addition of new units at Delaware City that would expand the plant’s ability to remove more sulfur from fuels, including one system that could cost as much as $650 million to build.
Gov. Jack Markell confirmed later that PBF officials had discussed the expansion, but said that he had no other details.
Markell and members of Delaware’s congressional delegation joined PBF management and labor representatives and other officials at a formal celebration of the plant’s return to production. The restart followed at least $400 million spent in a refinery-wide rehabilitation, and came nearly two years after Valero Energy decided in late 2009 to take a $1.4 billion write-off and shutter and raze the plant.
O’Malley described the plant’s resurrection as “an example of the success that can be achieved when all interested parties work together for a common goal.”
“You started up what I view as the most complex startup in my 35 or 40 years in this industry,” said O’Malley, often credited with bringing the nation’s independent refining industry into being. “You did it with almost no accidents. You started this up without damaging the environment. This, for us at PBF, was the single most important thing.”
Shortly after the shutdown, Markell’s administration zeroed in on O’Malley as a potential savior for the nearly 60-year-old refinery’s hundreds of high-paying, blue collar jobs.
O’Malley eventually agreed to buy Delaware City from Valero at the hugely discounted price of $220 million, in a deal sweetened by a state agreement to lend the company $20 million under terms that would convert the money to an outright grant if employment and spending hit state targets.
The company also received $10 million to support pollution control upgrades and new terms of emissions reduction deadlines.
“Delaware needs this, not only for the state, but for the people of the state,” said Jim Wolfe, president of the Delaware State Chamber of Commerce.
“We need the jobs. These are good jobs. The governor and PBF are stepping up to the challenge.
Nobody wanted this plant, and when you look at the kind of negotiations that went on to make this a viable facility, it really is a major step.”
Delaware City processes heavy, high-sulfur crude oil that can be purchased at prices often much lower than the lighter, “sweet” crudes handled by most of the other refineries along the Delaware River. All but the Delaware City and Paulsboro, N.J., refineries, both owned by PBF, are now on the market and facing a potential shutdown.
October 10, 2011 at 10:38 am #4899
Here is update on Delaware Refinery Restart & details on Plans to invest $1Billion.
I wonder if the $650MM unit is a new delayed coker to replace/addition to the troublesome Fluid coker (& Texaco Gasification plant – S/D) that was bain of Motiva & Valero?
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