Delek divests idled California refining, logistics assets
Delek US Holdings Inc. has completed the sale of its idled refining assets in Paramount and Long Beach, Calif., to an affiliate of Boston-based World Energy LLC.
Delek US Holdings Inc., Brentwood, Tenn., has completed the sale of its idled refining assets in Paramount and Long Beach, Calif., to an affiliate of Boston-based World Energy LLC (OGJ Online, Jan. 9, 2018).
Alongside the idled conventional refining assets, the $72-million sale included associated California pipeline and storage tank assets as well as Delek’s membership interests in AltAir Paramount LLC, which operates a 3,000-b/d renewable diesel-jet fuel refinery in Paramount, Delek said.
This marks the second step for Delek in its process to divest noncore assets following its February agreement to sell five US West Coast asphalt terminals for $75 million to an affiliate of Andeavor.
Delek continues to evaluate options for its other nonrefining assets in Long Beach and Bakersfield, Calif., a region outside of the company’s geographic footprint, said Uzi Yemin, Delek’s president and chief executive officer.
The US West Coast divestment plans come as part of Delek’s capital allocation program to return cash to shareholders following its previous acquisition of Alon USA Energy Inc. and Alon USA Partners LP (OGJ Online, July 3, 2017; Jan. 3, 2017).
As part of the transaction, World Energy—an advanced biofuel producer—acquired a 63-acre complex that consists of the renewable diesel-jet fuel refinery, 1.7 million bbl of product storage, a truck rack with 28,000 b/d of throughput capacity, rail storage for up to 70 railcars, and more than 71 miles of pipeline connecting the complex to major southern California distribution hubs, including Long Beach, World Energy said in a separate release.
“Our move into California, into renewable [jet-diesel] technology, and into expanding our downstream distribution capabilities are important next steps in our effort to establish a reliable [coast-to-coast] supply presence for growing blended biofuel customers,” said Gene Gebolys, World Energy’s chief executive officer.
The company disclosed no immediate plans for what it will do with the idled conventional refining assets.
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