PBF Energy of Conn. buys Valero’s Paulsboro refinery By Andrew Maykuth Inquirer Staff Writer
Tue Sept 28, 2010 – A Connecticut energy company Monday bought Valero Energy Corp.’s oil refinery in Paulsboro, the second Delaware River plant it has acquired this year.
PBF Energy Co. L.L.C. of Greenwich, Conn., will pay Valero $360 million for the 185,000-barrel-per-day Paulsboro refinery, plus the value of inventories, estimated at $275 million.
Michael Gayda, PBF’s president, said in an interview that he expected a “seamless” transition in the fourth quarter and that PBF would retain essentially all of the refinery’s 500 employees. “There won’t be a pause or shutdown in operations,” he said.
PBF, headed by veteran refining executive Thomas D. O’Malley, in April bought Valero’s Delaware City, Del., refinery. Gayda said the two refineries, 35 miles apart, were the most complex oil processors on the East Coast and would be operated synergistically.
Valero, based in Texas, bought the Paulsboro plant 12 years ago from Mobil Oil Corp.
The refining industry, beset by excess capacity and tight margins, is undergoing a shake-up. Gayda said PBF was confident that with an economic turnaround, the business would recover.
“Over the long term, we think things will get better,” he said.
Sunoco Inc., the region’s largest refiner, in November idled its Eagle Point refinery in Westville, Gloucester County, and shifted operations to its Philadelphia and Marcus Hook refineries.