02 July 2012 16:18 [Source: ICIS news]
(adds updates throughout)
HOUSTON (ICIS)--The Carlyle Group plans to upgrade the 330,000 bbl/day Philadelphia refinery in Pennsylvania through its joint venture with Sunoco, the companies said on Monday.
The joint venture, Philadelphia Energy Solutions, will upgrade the refinery’s catalytic cracker, improving reliability and operating performance, the companies said in a joint venture.
It will also build a high-speed train unloading facility that will “provide access to greater quantities of crude oil from North America, particularly high-quality, low-sulphur crude from the Bakken region in North Dakota”.
In addition, the JV will build a mild hydrocracker and hydrogen plant.
“By converting the existing middle distillate hydrotreater into a mild hydrocracker and constructing a natural gas-based hydrogen plant, the refinery will produce a more environmentally friendly mix of refined products,” the companies said.
The companies did not immediately respond to a request for comment.
The Commonwealth of Pennsylvania will provide economic support for the projects.
Financial details were not available.
The Carlyle Group and Sunoco announced the formation of the joint venture on Monday.
The refinery, the oldest on the US east coast, had been scheduled for shutdown in August due to poor economics.
The joint venture is expected to save 850 jobs, secure the region’s fuel supply by continuing the daily flow of 10m gal of fuels and create 100-200 new, permanent jobs, as well as thousands of construction jobs, the companies said in a joint statement.
Sunoco will contribute its Philadelphia refinery assets to the joint venture in exchange for a non-operating minority interest.
The Carlyle Group will fund future capital projects, facility upgrades and enhance the refinery’s working capital.
Carlyle will hold the majority interest, and oversee day-to-day operations of the joint venture and the refinery.
Additional reporting by Brian Ford
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.
|ICIS news FREE TRIAL|
|Get access to breaking chemical news as it happens.|
|ICIS Global Petrochemical Index (IPEX)|
|ICIS Global Petrochemical Index (IPEX). Download the free tabular data and a chart of the historical index|
Asian Chemical Connections