Located near the US Gulf Coast, the refinery has a capacity to process nearly 90,000 barrels per day of crude oil and products
Shell world headquarters in Haagse Hout, The Hague. (Credit: P.L. van Till/Wikipedia.)
Royal Dutch Shell, through its subsidiaries Equilon, Shell Oil Company and Shell Chemical, has agreed to sell its Mobile Chemical Refinery in Alabama to Vertex Energy.
Along with the sale of refinery, related co-located logistics infrastructure, including product racks, an associated dock, and the Blakeley Island Terminal will also be divested.
Under the terms of the agreement, Shell will receive a consideration of $75m in cash plus the value of the hydrocarbon inventory for the sale.
Vertex Energy is a Texas-based specialty refiner engaged in refining alternative feedstocks and marketing high purity petroleum products.
Shell said that its divestment decision is part of its strategy to reduce its global refinery footprint to core sites integrated with its trading hubs, chemicals plants and marketing businesses.
Shell manufacturing EVP Robin Mooldijk said: “The sale of the Mobile refinery shows that we are making good progress delivering on our manufacturing strategy.
“We’re becoming better positioned to deliver resilient returns and meet the increasingly diverse needs of our customers.”
The Mobile refinery is wholly owned by Shell, located near the US Gulf Coast, at the north end of Mobile Bay in Alabama.
The refinery is designed to process nearly 90,000 barrels per day of crude oil and products, including liquefied petroleum gas (LPG), diesel fuel, jet fuel and gasoline.
Also, the refinery produces low-sulfur VGO/Heavy Olefin Feed and Benzene, and has the optionality to run as a stand-alone refinery, produce base oils or chemicals feedstock.
To support Shell’s customers in the region, Shell and Vertex Energy are anticipated to have crude supply and product offtake agreements, as part of the transaction,
The transaction is expected to close in fourth quarter 2021, subject to regulatory approvals.
Recently, Shell has agreed to sell its Deer Park Refining to its joint-venture partner Petroleos Mexicanos (Pemex), the state-owned oil firm in Mexico for $596m.