The transaction is expected to close during the second quarter contingent upon regulatory [image-nocss] approvals, as well as the parties' completion of certain agreements with the state of Delaware.
After the transaction closes, Valero will continue to supply its area customers via a terminaling agreement with the site's new owners.
Valero made the decision to permanently close and discontinue operations at the refinery in November 2009 after unsuccessfully seeking a buyer. Earlier this year, Valero and PBF entered discussions with the support of Governor Jack Markell regarding a possible purchase of the site's assets.
"We are pleased that we have reached this agreement with PBF," said Valero Chairman and CEO Bill Klesse. "The transaction reflects incremental cash flow and a good value for the terminal and shut-down refinery units. For the state of Delaware, this provides the potential to regain manufacturing jobs in the future. We thank Gov. Markell for his active participation in facilitating our agreement."
San Antonio, Texas-based Valero Energy operates 15 refineries with a combined throughput capacity of approximately 2.8 million barrels per day. Valero is also a leading ethanol producer with 10 ethanol plants in the Midwest with a combined capacity of 1.1 billion gallons per year, and is one of the nation's largest retail operators with approximately 5,800 retail and branded wholesale outlets in the United States, Canada and the Caribbean under the Valero, Diamond Shamrock, Shamrock, Ultramar and Beacon brands.
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