As part of the reconfiguration, some of the units at the Paulsboro refinery in the US are planned to be idled
PBF Energy is planning to reconfigure Delaware City and Paulsboro refineries in the US, citing impacts on fuel demand due to the Covid-19 pandemic.
The firm, depending on market conditions, plans to maintain future throughput capacity of approximately 260,000 barrels per day.
As part of the reconfiguration, some of the units at the Paulsboro refinery are planned to be idled. These units include the smaller of two crude units, coker, fluid catalytic cracker and several smaller units.
With the flexibility to respond to the dynamic market conditions, the reconfigured East Coast refining system will retain significant crude optionality. The reconfiguration slated for completion by the end of 2020.
PBF to operate certain Delaware City and remaining Paulsboro units
However, the company intends to operate certain Delaware City and remaining Paulsboro units at higher utilisation and efficiency.
As a result of the East Coast refining reconfiguration, PBF Energy expects to save an annual operating cost of approximately $100m and capital expenditures of $50m.
In a press statement, PBF Energy said: “We anticipate realizing a one-time benefit in reduced working capital as a result of overall lower throughput and inventory levels. We also expect to incur non-recurring expenses as a result of workforce reductions.”
PBF Energy chairman and CEO Tom Nimbley said that as part of the reconfiguration, the firm will operate the most profitable components of the East Coast refining system at lower cost.
Nimbley added: “This is another step in our broader strategic process aimed at increasing the competitive position of our entire refining portfolio.”
The reconfiguration of the Paulsboro refinery is expected to affect 250 jobs while the partially refined feedstocks will be transferred to PBF’s nearby refinery in Delaware City, Delaware, Reuters reported citing Tom Nimbley as saying in the letter.
Earlier this year, PBF Energy signed a letter of intent with Air Products and Chemicals to sell five of its hydrogen steam methane reformer (SMR) hydrogen production plants for $530m.