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Released February 11, 2022 | SUGAR LAND
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Researched by Industrial Info Resources (Sugar Land, Texas)--PBF Energy Incorporated (NYSE:PBF) (Parsippany, New Jersey) is keeping its eyes on renewable diesel as a ticket to a prosperous future in the refining industry. North American refineries have lost more than 1 million barrels of production since early 2020, due to plant closures amid the COVID-19 pandemic. But now that lockdowns are largely a thing of the past, PBF is struggling to meet a sharp revival in demand for gasoline products, while converting much of its existing capacity to renewable diesel production. Industrial Info is tracking more than $1 billion worth of active projects from PBF, nearly half of which is attributed to proposed unit conversions to renewable diesel.
Click on the image at right for a graph detailing PBF's active project investments, by project type.
"Looking ahead, demand is continuing to grow and return to pre-pandemic levels," said Tom Nimbley, the chief executive officer of PBF, in a quarterly earnings-related press release. "Global inventories are tight across the board for crude and products. The current backdrop for refining in 2022 and beyond, especially domestic refining, is looking favorable."
One of PBF's highest-profile project proposals is the conversion of a hydrocracker at its refinery in Chalmette, Louisiana, to process 20,000 barrels per day (BBL/d) of feedstock into renewable diesel. Subsidiary Chalmette Refining LLC's hydrocracker has been mothballed since 2010, but last year PBF signed a preliminary contract with Honeywell UOP to license technology, should the project be approved, according to Oil & Gas Journal. The revamped unit would use UOP's Ecofining technology to produce Honeywell Green Diesel fuel, which is chemically identical to petroleum-based diesel and can be used in vehicles with no engine modifications, according to the Journal.
Honeywell International (NYSE:HON) (Morris Plains, New Jersey) is among the technology, equipment and service providers turning to emerging technologies, such as green fuels and blue hydrogen, to lock in growth. For more information, see February 7, 2022, article - Honeywell Tries on Green, Blue Outfits to Deal with Rough Energy Market. Subscribers to Industrial Info's Global Market Intelligence (GMI) Petroleum Refining Project Database can learn more about the hydrocracker conversion in a detailed project report.
"We have been advancing [the Chalmette] project for more than a year, and to date have focused on completing engineering, permitting, securing longer-lead time equipment and commencing initial site preparations, with the goal of being in production in the first half of 2023," PBF said in the quarterly press release. "Concurrent with our activities to progress the project, we are continuing discussions with potential strategic and financial partners."
PBF also is exploring the possibility of building a pre-treatment unit capable of processing 15,000 to 20,000 BBL/d of soybean oil, corn oil, tallow and lipids into feedstock for the revamped refinery. Separately, the Chalmette Refinery is considering a debottlenecking of its Delayed Coker 1 Unit to increase its capacity from 12,000 to 14,000 BBL/d. Subscribers can learn more from Industrial Info's project reports on the proposed pre-treatment unit and debottlenecking.
"Chalmette's location, essentially at the intersection of the Mississippi River and the Gulf of Mexico, is ideal with direct access to the green belt and trade flows on the Mississippi, and with full optionality to deliver [renewable diesel] products to the most attractive markets globally," said Matt Lucey, the president of PBF, in an earnings-related conference call. "With the combination of operating expense and logistics advantages, we believe we will be able to deliver the lowest-cost renewable-diesel barrels into all the key demand markets, including Europe, Canada and California, where we will be further advantaged by utilizing our existing statewide footprint."
Other facilities being considered for renewable diesel conversions include the refinery in Martinez, California, and the refinery in Paulsboro, New Jersey. Subsidiary Martinez Refining Company LLC would repurpose a pair of idled lube oil hydrotreaters at the 157,000-BBL/d refinery, which PBF acquired in early 2020, shortly before the COVID-19 outbreak became noticeable in the U.S. Subscribers can learn more from Industrial Info's project report.
Paulsboro Refining Company, another PBF subsidiary, would add renewable diesel production to its 165,000-BBL/d refinery, which halted its gasoline production at the end of 2020. The subsidiary already is preparing for a restart of its fluid catalytic cracking unit (FCCU), which has a 55,000-BBL/d capacity. Lucey and other executives said that the startup of some secondary units on the East Coast, particularly Paulsboro, is a near-term focus for PBF in addressing revived gasoline demand and surging prices at the pump. Subscribers can learn more from Industrial Info's reports on the Paulsboro conversion and the FCCU restart.
The Paulsboro Refinery also is among those riding a wave of revived demand for gasoline products, which has not ebbed since the COVID-related lockdowns began easing in mid-2021. "The market is a lot more balanced than it used to be, and the U.S. East Coast, which is import-dependent, now looks more attractive than it was, say, a few years ago," said Robert Campbell, an analyst at Energy Aspects, in a recent interview with Bloomberg. "The prospect of more refinery closures in Europe amid a push for decarbonization could further tighten supplies and improve margins for coastal refineries such as Paulsboro."
PBF executives say turnaround and other mandatory spending (e.g.: environmental, regulatory and safety) will account for between $350 million and $425 million of capital expenditures (capex) in 2022, which they expect will amount to more than 96% of the company's planned capex for the year. Capex totaled $395.7 million in 2021.
For full-year 2021, PBF reported $231 million in net income, compared with a $1.39 billion net loss in 2020. Revenues in 2021 totaled $27.25 billion, an 80.3% increase from 2020.
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.
Click on the image at right for a graph detailing PBF's active project investments, by project type."Looking ahead, demand is continuing to grow and return to pre-pandemic levels," said Tom Nimbley, the chief executive officer of PBF, in a quarterly earnings-related press release. "Global inventories are tight across the board for crude and products. The current backdrop for refining in 2022 and beyond, especially domestic refining, is looking favorable."
One of PBF's highest-profile project proposals is the conversion of a hydrocracker at its refinery in Chalmette, Louisiana, to process 20,000 barrels per day (BBL/d) of feedstock into renewable diesel. Subsidiary Chalmette Refining LLC's hydrocracker has been mothballed since 2010, but last year PBF signed a preliminary contract with Honeywell UOP to license technology, should the project be approved, according to Oil & Gas Journal. The revamped unit would use UOP's Ecofining technology to produce Honeywell Green Diesel fuel, which is chemically identical to petroleum-based diesel and can be used in vehicles with no engine modifications, according to the Journal.
Honeywell International (NYSE:HON) (Morris Plains, New Jersey) is among the technology, equipment and service providers turning to emerging technologies, such as green fuels and blue hydrogen, to lock in growth. For more information, see February 7, 2022, article - Honeywell Tries on Green, Blue Outfits to Deal with Rough Energy Market. Subscribers to Industrial Info's Global Market Intelligence (GMI) Petroleum Refining Project Database can learn more about the hydrocracker conversion in a detailed project report.
"We have been advancing [the Chalmette] project for more than a year, and to date have focused on completing engineering, permitting, securing longer-lead time equipment and commencing initial site preparations, with the goal of being in production in the first half of 2023," PBF said in the quarterly press release. "Concurrent with our activities to progress the project, we are continuing discussions with potential strategic and financial partners."
PBF also is exploring the possibility of building a pre-treatment unit capable of processing 15,000 to 20,000 BBL/d of soybean oil, corn oil, tallow and lipids into feedstock for the revamped refinery. Separately, the Chalmette Refinery is considering a debottlenecking of its Delayed Coker 1 Unit to increase its capacity from 12,000 to 14,000 BBL/d. Subscribers can learn more from Industrial Info's project reports on the proposed pre-treatment unit and debottlenecking.
"Chalmette's location, essentially at the intersection of the Mississippi River and the Gulf of Mexico, is ideal with direct access to the green belt and trade flows on the Mississippi, and with full optionality to deliver [renewable diesel] products to the most attractive markets globally," said Matt Lucey, the president of PBF, in an earnings-related conference call. "With the combination of operating expense and logistics advantages, we believe we will be able to deliver the lowest-cost renewable-diesel barrels into all the key demand markets, including Europe, Canada and California, where we will be further advantaged by utilizing our existing statewide footprint."
Other facilities being considered for renewable diesel conversions include the refinery in Martinez, California, and the refinery in Paulsboro, New Jersey. Subsidiary Martinez Refining Company LLC would repurpose a pair of idled lube oil hydrotreaters at the 157,000-BBL/d refinery, which PBF acquired in early 2020, shortly before the COVID-19 outbreak became noticeable in the U.S. Subscribers can learn more from Industrial Info's project report.
Paulsboro Refining Company, another PBF subsidiary, would add renewable diesel production to its 165,000-BBL/d refinery, which halted its gasoline production at the end of 2020. The subsidiary already is preparing for a restart of its fluid catalytic cracking unit (FCCU), which has a 55,000-BBL/d capacity. Lucey and other executives said that the startup of some secondary units on the East Coast, particularly Paulsboro, is a near-term focus for PBF in addressing revived gasoline demand and surging prices at the pump. Subscribers can learn more from Industrial Info's reports on the Paulsboro conversion and the FCCU restart.
The Paulsboro Refinery also is among those riding a wave of revived demand for gasoline products, which has not ebbed since the COVID-related lockdowns began easing in mid-2021. "The market is a lot more balanced than it used to be, and the U.S. East Coast, which is import-dependent, now looks more attractive than it was, say, a few years ago," said Robert Campbell, an analyst at Energy Aspects, in a recent interview with Bloomberg. "The prospect of more refinery closures in Europe amid a push for decarbonization could further tighten supplies and improve margins for coastal refineries such as Paulsboro."
PBF executives say turnaround and other mandatory spending (e.g.: environmental, regulatory and safety) will account for between $350 million and $425 million of capital expenditures (capex) in 2022, which they expect will amount to more than 96% of the company's planned capex for the year. Capex totaled $395.7 million in 2021.
For full-year 2021, PBF reported $231 million in net income, compared with a $1.39 billion net loss in 2020. Revenues in 2021 totaled $27.25 billion, an 80.3% increase from 2020.
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.
