Valero reaches deal to sell Delaware City refinery for $220m

08 April 2010 22:32  [Source: ICIS news]

HOUSTON (ICIS news)--US refiner Valero announced on Thursday that it has reached an agreement to sell its idled Delaware City refinery for $220m (€165m) to subsidiaries of petroleum investment firm PBF Energy.

Valero permanently closed the 182,200 bbl/day refinery in November 2009 following fruitless efforts to find a buyer for the facility, which had been losing money due to weak profit margins.

Earlier this year, Valero and PBF entered discussions with the support of Delaware Governor Jack Markell regarding a possible purchase of the site’s assets.

PBF said it plans major maintenance work at the refinery over the next nine months and aims to restart the refinery in the spring of 2011.

Delaware City Refining Company and Delaware Pipeline Company, which purchased the refinery, are wholly-owned subsidiaries of PBF Energy.

PBF Energy is a partnership consisting of European refiner Petroplus Holdings, Blackstone Group and First Reserve.

($1 = €0.75)

To discuss issues facing the chemical industry go to ICIS connect

By: Steven McGinn
+1 713 525 2653

For the latest chemical news, data and analysis that directly impacts your business sign up for a free trial to ICIS news - the breaking online news service for the global chemical industry.

Get the facts and analysis behind the headlines from our market leading weekly magazine: sign up to a free trial to ICIS Chemical Business.

Printer Friendly