Vertex Energy to acquire Shell refinery in Mobile, Alabama
Royal Dutch Shell (RDSa.L) is selling its 90,000 barrels per day (b / d) mobile refinery in Alabama to specialty refiner Vertex Energy for $ 75 million plus the cost of hydrocarbon inventories, the company said on Wednesday. .
Vertex plans to produce petroleum fuel and renewable diesel at the refinery after the transaction closes in the fourth quarter of 2021, pending approvals.
Shares of Texas-based Vertex (VTNR.O) jumped more than 40% in after-market trades after the deal was announced.
Vertex will also purchase logistics infrastructure and related hydrocarbon inventories, including more than 3 million barrels of crude oil and product storage. The inventory is currently valued at between $ 65 million and $ 85 million, Shell said.
Shell and Vertex will have agreements to supply crude and distribute products, according to the companies.
Vertex plans to produce around 10,000 bpd of renewable diesel and renewable by-products at the plant by the end of 2022, rising to 14,000 bpd by 2023.
The company said it would spend $ 85 million to convert Mobile’s hydrocracker unit.
Shell is reducing its portfolio of refining products and chemicals as part of a larger shift in oil majors to reduce hydrocarbon emissions and switch to low-carbon fuels.
Earlier this week, Shell agreed to sell its majority stake in a Texas refinery to partner Petroleos Mexicanos (Pemex) for around $ 596 million.
In early May, Shell announced the sale of its 149,000 barrels per day (bpd) refinery in Washington to Hollyfrontier Corp.
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