Valero, which has said that negotiations have begun, declined to identify a counter-party in the talks, Reuters reported.

The 185,000bpd Paulsboro refinery would likely command a higher price because it is in operation.

Valero began weighing the refinery’s future as competition from fuel imports to the US Northeast began knocking down refining margins.

PBF is a $2bn partnership between between European refiner Petroplus Holdings and private equity firms Blackstone Group and First Reserve, created to acquire US refineries.

PBF is led by Petroplus chairman Tom O’Malley, who built two US independent refining companies, Tosco and Premcor, before moving to Petroplus.