By OGJ editors
HOUSTON, Jan. 22 -- Valero Energy Corp., San Antonio, said Jan. 22 that it is in advanced negotiations to sell the assets of its terminal operation and discontinued operations at its 210,000-b/d Delaware City, Del., refinery to PBF Investments LLC, Greenwich, Conn.
Valero last year announced it was permanently closing the refinery, citing financial losses caused by “very poor economic conditions, significant capital spending requirements, and high operating costs.” The refinery shutdown started immediately upon the announcement (OGJ Online, Nov. 20, 2009).
Bill Klesse, Valero chairman and chief executive officer, said there is no specific timetable for when negotiations might be completed. Valero has agreed that no removal of process equipment will take place while negotiations are under way.
PBF Investments is a joint venture of European refinery Petroplus and the US private equity firms of Blackstone Group and First Reserve Corp. Reuters reported Petroplus has been interested in US refining assets since early 2008.
Klesse noted Delaware Gov. Jack Markell has been working with state economic development officials and Valero to find a buyer for the Delaware City site.