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Released August 23, 2017 | SUGAR LAND
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Researched by Industrial Info Resources (Sugar Land, Texas)--PBF Energy Incorporated (NYSE:PBF) (Parsippany, New Jersey) has completed its major refinery turnarounds for 2017, clearing the way for what the company hopes will be relatively smooth operations for the rest of this year.
PBF owns and operates five refineries in the U.S., including those in Louisiana, California, Delaware, New Jersey and Ohio. During the second quarter, the company completed extensive turnarounds at its refineries in Torrance, California, and Delaware City, Delaware, according to the company's recent earnings release.
Chief Executive Officer Tom Nimbley said in the release: "When combined with the crude unit turnaround at Chalmette during the first quarter, we have successfully executed our major maintenance goals for 2017," adding, "Going into the second half of the year, we have five operating refineries, no significant turnaround activity and a refining environment supported by strong domestic and international demand."
The cost of the turnaround work figured prominently in PBF's second-quarter earnings results. The company reported a second-quarter 2017 net loss of $109.7 million, compared with a net profit of $103.5 million in second-quarter 2016. Refining segment capital expenditures for the just-ended quarter were nearly $243 million, and included the turnarounds at Delaware City and Torrance, as well as the reformer restart project at the company's Chalmette refinery in Louisiana. For the remainder of this year, PBF expects to spend about $175 million on refining capital expenditures, Nimbley said during the company's earnings presentation.
At the 189,000-barrel-per-day (BBL/d) Chalmette refinery, the $50 million project to restart the Reformer 3 unit is mechanically complete, Nimbley said. For more information, see Industrial Info's project report. Also, the associated $20 million Light Ends Unit Restart/Revamp project is in the startup phase, he said. For more information, see Industrial Info project report.
Finally, "The new crude tank at Chalmette is also well underway, and we expect the tank to be in service as planned by late October," Nimbley said. "As mentioned on prior calls, this project is a gateway to decongesting our dock facilities and increasing our product export capabilities."
The $29 million storage tank adds 450,000 barrels of capacity at the site. For more information, see Industrial Info's project report.
The turnaround at the 155,000-BBL/d Torrance refinery included the crude unit, cokers, saturated gas plant hydrocracker and the FCC feed hydrotreater," Nimbley said. At its peak, more than 2,000 people were working onsite. The refinery is now operating at planned rates, he added, and is expected to see improved reliability and performance. PBF bought the Torrance refinery from Exxon Mobil Corporation (NYSE:XOM) (Irving Texas) in 2015, but the facility has been plagued by reliability issues. For related information, see February 21, 2017, article - PBF Energy Vows to Improve Refinery Reliability.
Also, the City of Torrance has issued a building permit to allow for the construction of a foundation and enclosure to house a 220,000-volt switching station as part of the company's drive to increase electrical reliability, Nimbley said. The refinery experienced two costly power outages last year.
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, six offices in North America and 12 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities. Follow IIR on: Facebook - Twitter - LinkedIn. For more information on our coverage, send inquiries to info@industrialinfo.com or visit us online at http://www.industrialinfo.com.
PBF owns and operates five refineries in the U.S., including those in Louisiana, California, Delaware, New Jersey and Ohio. During the second quarter, the company completed extensive turnarounds at its refineries in Torrance, California, and Delaware City, Delaware, according to the company's recent earnings release.
Chief Executive Officer Tom Nimbley said in the release: "When combined with the crude unit turnaround at Chalmette during the first quarter, we have successfully executed our major maintenance goals for 2017," adding, "Going into the second half of the year, we have five operating refineries, no significant turnaround activity and a refining environment supported by strong domestic and international demand."
The cost of the turnaround work figured prominently in PBF's second-quarter earnings results. The company reported a second-quarter 2017 net loss of $109.7 million, compared with a net profit of $103.5 million in second-quarter 2016. Refining segment capital expenditures for the just-ended quarter were nearly $243 million, and included the turnarounds at Delaware City and Torrance, as well as the reformer restart project at the company's Chalmette refinery in Louisiana. For the remainder of this year, PBF expects to spend about $175 million on refining capital expenditures, Nimbley said during the company's earnings presentation.
At the 189,000-barrel-per-day (BBL/d) Chalmette refinery, the $50 million project to restart the Reformer 3 unit is mechanically complete, Nimbley said. For more information, see Industrial Info's project report. Also, the associated $20 million Light Ends Unit Restart/Revamp project is in the startup phase, he said. For more information, see Industrial Info project report.
Finally, "The new crude tank at Chalmette is also well underway, and we expect the tank to be in service as planned by late October," Nimbley said. "As mentioned on prior calls, this project is a gateway to decongesting our dock facilities and increasing our product export capabilities."
The $29 million storage tank adds 450,000 barrels of capacity at the site. For more information, see Industrial Info's project report.
The turnaround at the 155,000-BBL/d Torrance refinery included the crude unit, cokers, saturated gas plant hydrocracker and the FCC feed hydrotreater," Nimbley said. At its peak, more than 2,000 people were working onsite. The refinery is now operating at planned rates, he added, and is expected to see improved reliability and performance. PBF bought the Torrance refinery from Exxon Mobil Corporation (NYSE:XOM) (Irving Texas) in 2015, but the facility has been plagued by reliability issues. For related information, see February 21, 2017, article - PBF Energy Vows to Improve Refinery Reliability.
Also, the City of Torrance has issued a building permit to allow for the construction of a foundation and enclosure to house a 220,000-volt switching station as part of the company's drive to increase electrical reliability, Nimbley said. The refinery experienced two costly power outages last year.
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, six offices in North America and 12 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities. Follow IIR on: Facebook - Twitter - LinkedIn. For more information on our coverage, send inquiries to info@industrialinfo.com or visit us online at http://www.industrialinfo.com.
