Shell sells its refinery in Martinez to PBF Energy for nearly $1 billion.
Shell Oil plans to sell its refinery in Martinez to PBF Energy for between $900 million and $1 billion, the companies have announced.
PBF Energy, which is based in New Jersey, also owns a refinery in Torrance (Los Angeles County).
The Martinez plant is one of California’s largest refineries. It produces about 157,000 barrels per day, PBF said, and the acquisition will increase PBF’s capacity to 1 million barrels per day.
“Martinez is one of the most complex refineries in the country and a top-tier asset,” PBF CEO Tom Nimbley said in a statement.
He called the acquisition a “significant strategic step for PBF as we expand our West Coast operations and increase our total throughput capacity.”
The refinery has had its share of issues
throughout the years. In March, Shell agreed to pay $165,000 to settle 16 air quality violations that occurred in 2015 and 2016, according to the Bay Area Air Quality Management District.
Still, the Shell refinery is one of the safer Bay Area refineries when it comes to “catastrophic incidents,” according to Andres Soto, the Richmond community organizer with Communities for a Better Environment.
“We have to wait and see how they (PBF) are going to manage this refinery,” he said. “... I think one of the good things is they are going to retain the existing workforce, which is a unionized workforce, but I think at this point it’s a waitand-see attitude.”
The sale is expected to close this year.
Shell is working on better integrating its refining efforts with its chemicals, trading hubs and marketing divisions, the company said.
“This deal is another step in our transformation to highgrade and optimize our portfolio to drive resilient returns,” Shell downstream director John Abbott said in a statement.