22 December 2011 19:17 [Source: ICIS news]
HOUSTON (ICIS)--US-based PBF Energy plans to build a hydrocracker and hydrogen plant at its 190,000 bbl/day Delaware City refinery in Delaware, so it can make more distillate and take advantage of global demand and export opportunities, a refinery engineering source said on Thursday.
The so-called PBF Clean Fuels Project has an expected capital expenditure of $1bn (€770m), and it should last three years. When completed, the units will process streams from both the Delaware City refinery and the 170,000 bbl/day Paulsboro refinery in New Jersey.
The hydrocracker will reduce the sulphur content by 99% for about 65,000 bbl/day of distillate production.
The US export market for distillates is an average of 0.9–1.0m bbl/day, according to the US Energy Information Administration (EIA).“The PBF Clean Fuels Project will ensure the long-term survivability of the Delaware City and Paulsboro refineries in good markets and bad,” said PBF’s chairman Thomas O’Malley. “It has always been our intention to make Delaware City and Paulsboro world-class refineries, which will certainly be the case with this project.”
The Delaware City refinery was purchased in an idled state in June 2010 from Valero, and it was restarted in October 2011. The Paulsboro refinery was purchased by PBF Energy in December 2010.
The Delaware City refinery is a high-conversion heavy crude oil refinery with most of its current production sold in the US northeast. The Paulsboro refinery is also a high-conversion heavy crude oil refinery, and it is about 35 miles (56kg) from the Delaware City refinery.
O’Malley formerly served as the chairman and CEO of Petroplus Holdings as well as the chairman and CEO of Premcor and Tosco. Tosco was the largest US independent refinery and marketer of oil products before O’Malley sold the company to Phillips Petroleum in September 2001.
($1 = €0.77)
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