Shell unit Equilon Enterprises closes $1.2bn sale of Martinez Refinery

Equilon Enterprises has concluded the $1.2bn divestment of the Martinez Refinery in California to PBF Energy subsidiary PBF Holding on behalf of Shell Oil Products US.

Martinez is a high-conversion refinery that produces premium gasoline, diesel, and jet fuel.

Crude supply and product offtake agreements were also part of the deal signed by Shell and PBF, to ensure that the former’s customers will continue to have access to quality Shell-branded fuels.

The refinery has a 157,000bpd refining capacity and a Nelson Complexity Index of 16.1.

The deal to sell the refinery to PBF was originally signed in June last year.

It aligns with Shell’s strategy to modify refining efforts towards a smarter refining portfolio, which is focused on further amalgamation with Shell Trading hubs, Chemicals, and Marketing.

In a press statement, Shell said: “As we turn over ownership of the Martinez refinery to PBF, we offer our many thanks to the City and community of Martinez for all they have done to support and partner with Shell and our employees over the last 100 years.”

The deal comprised the sale of Shell’s on-site logistics assets, including a deepwater marine facility, product distribution terminals, and refinery crude and product storage facilities with an 8.8Mbbl shell capacity.

PBF Energy and Shell have agreed to move forward with reviewing the feasibility of building a planned renewable diesel project to repurpose existing idled equipment at the refinery and create a renewable fuels production plant.

The detailed feasibility review and planning for the renewable diesel project will be initiated upon closing of this deal.

Shell said that the employees who provided support to the Martinez refinery were offered jobs with PBF.