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Released July 30, 2021 | SUGAR LAND
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Researched by Industrial Info Resources (Sugar Land, Texas)--Petroleum refiner PBF Energy Incorporated (NYSE:PBF) (Parsippany, New Jersey) reported second-quarter 2021 net income attributable to the company of $47.9 million, a sizeable drop from the $389.1 million reported for second-quarter 2020. Even so, PBF Chief Executive Tom Nimbley said the results "reflect the improving demand environment. We operated our refineries at rates which were the highest since the onset of the pandemic."
PBF owns and operates six U.S. oil refineries and related assets with a combined throughput of more than 1 million barrels per day (BBL/d). The refineries ran at a throughput rate of 875,000 BBL/d in the just-ended second quarter and are expected to run at a similar rate in the third quarter, the company said.
"Demand continued its gradual improvement but is still not at pre-pandemic levels," Nimbley said in a press release. "We expect, as demand incrementally improves, that we could see additional crude supply enter the market which could directionally shift current headwinds to tailwinds in the commodities market."
PBF expects capital expenditures for 2021 to run between $400 million and $450 million.
Industrial Info is tracking $984 million worth of PBF project activity, including nearly $600 million worth that has a medium (70% to 80%) or high (81% to 99%) probability of moving forward as planned.
Click on the image at right for a graph showing PBF's project activity by project type.
The company continues to make progress on a potential renewable diesel facility at its Chalmette Refinery in Louisiana, Nimbley said. The project would make use of an idle hydrocracker and a newly-constructed pre-treatment unit for a 20,000-BBL/d renewable diesel production facility. The hydrocracker has been idled since 2010.
"We believe that with the utilization of currently idled assets, and its strategic location on the Mississippi River, our project will have a shorter time to market and reduced construction costs, compared to similar greenfield projects," he continued.
A final investment decision (FID) on the project is contingent on a number of factors, including the ability of PBF to attract a partner, along with state and local incentives. PBF President Matthew Lucey said during the company's earnings conference call that an incentives agreement was reached this week with state and local authorities. Subscribers to Industrial Info's Global Market Intelligence (GMI) Petroleum Refining Project Database can click here for a detailed report.
U.S. production capacity for renewable diesel could increase significantly through 2024, based on several announcements for projects that either are under construction or could be in development soon, according to the U.S. Energy Information Administration's (EIA) Thursday Today in Energy report. As of the end of 2020, U.S. renewable diesel production capacity totaled nearly 600 million gallons per year, or 38,000 BBL/d. If all projects come online as intended, U.S. renewable diesel production would total 5.1 billion gallons per year, or 330,000 BBL/d, by the end of 2024.
Meanwhile, regarding its West Coast operations, PBF officials said new air particulate standards imposed in the San Francisco Bay area on the company's 157,000-BBL/d Martinez Refinery may not be as costly as feared. Earlier in July, the Bay Area Air Quality Management District (BAAQMD) board voted to strengthen a rule to reduce emissions from fluid catalytic cracking (FCC) units at area refineries. The rule requires refineries to install technology to cut particulate emissions by 70%.
In arguing against the proposed rule, PBF said installing wet gas scrubbers to cut emissions would cost up to $800 million.
However, PBF President Matthew Lucey said during the company's earnings conference call on Thursday that the rule does not specify that the company must install wet gas scrubbers in order to cut emissions by the required amount. PBF purchased the Martinez Refinery last year from Royal Dutch Shell (NYSE:RDS-A) (The Hague, Netherlands), in which Shell agreed to pay for new reactors for the refinery that will reduce the sulfur and particulate matter in the FCC feed, which in turn will substantially reduce emissions, he said.
"The installation of the reactors, which will amount to less than $20 million, was included in our initial capital planning for 2021, and represents zero incremental spend. Reduction of emissions will begin to be realized in first-quarter 2022," Lucey said. The company then will evaluate further emission reductions, he added, noting that PBF has five years to achieve the new standards.
Industrial Info is tracking $169 million in project activity at the Martinez Refinery. Subscribers can click here for detailed project reports.
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 six U.S. oil refineries and related assets with a combined throughput of more than 1 million barrels per day (BBL/d). The refineries ran at a throughput rate of 875,000 BBL/d in the just-ended second quarter and are expected to run at a similar rate in the third quarter, the company said.
"Demand continued its gradual improvement but is still not at pre-pandemic levels," Nimbley said in a press release. "We expect, as demand incrementally improves, that we could see additional crude supply enter the market which could directionally shift current headwinds to tailwinds in the commodities market."
PBF expects capital expenditures for 2021 to run between $400 million and $450 million.
Industrial Info is tracking $984 million worth of PBF project activity, including nearly $600 million worth that has a medium (70% to 80%) or high (81% to 99%) probability of moving forward as planned.
Click on the image at right for a graph showing PBF's project activity by project type.The company continues to make progress on a potential renewable diesel facility at its Chalmette Refinery in Louisiana, Nimbley said. The project would make use of an idle hydrocracker and a newly-constructed pre-treatment unit for a 20,000-BBL/d renewable diesel production facility. The hydrocracker has been idled since 2010.
"We believe that with the utilization of currently idled assets, and its strategic location on the Mississippi River, our project will have a shorter time to market and reduced construction costs, compared to similar greenfield projects," he continued.
A final investment decision (FID) on the project is contingent on a number of factors, including the ability of PBF to attract a partner, along with state and local incentives. PBF President Matthew Lucey said during the company's earnings conference call that an incentives agreement was reached this week with state and local authorities. Subscribers to Industrial Info's Global Market Intelligence (GMI) Petroleum Refining Project Database can click here for a detailed report.
U.S. production capacity for renewable diesel could increase significantly through 2024, based on several announcements for projects that either are under construction or could be in development soon, according to the U.S. Energy Information Administration's (EIA) Thursday Today in Energy report. As of the end of 2020, U.S. renewable diesel production capacity totaled nearly 600 million gallons per year, or 38,000 BBL/d. If all projects come online as intended, U.S. renewable diesel production would total 5.1 billion gallons per year, or 330,000 BBL/d, by the end of 2024.
Meanwhile, regarding its West Coast operations, PBF officials said new air particulate standards imposed in the San Francisco Bay area on the company's 157,000-BBL/d Martinez Refinery may not be as costly as feared. Earlier in July, the Bay Area Air Quality Management District (BAAQMD) board voted to strengthen a rule to reduce emissions from fluid catalytic cracking (FCC) units at area refineries. The rule requires refineries to install technology to cut particulate emissions by 70%.
In arguing against the proposed rule, PBF said installing wet gas scrubbers to cut emissions would cost up to $800 million.
However, PBF President Matthew Lucey said during the company's earnings conference call on Thursday that the rule does not specify that the company must install wet gas scrubbers in order to cut emissions by the required amount. PBF purchased the Martinez Refinery last year from Royal Dutch Shell (NYSE:RDS-A) (The Hague, Netherlands), in which Shell agreed to pay for new reactors for the refinery that will reduce the sulfur and particulate matter in the FCC feed, which in turn will substantially reduce emissions, he said.
"The installation of the reactors, which will amount to less than $20 million, was included in our initial capital planning for 2021, and represents zero incremental spend. Reduction of emissions will begin to be realized in first-quarter 2022," Lucey said. The company then will evaluate further emission reductions, he added, noting that PBF has five years to achieve the new standards.
Industrial Info is tracking $169 million in project activity at the Martinez Refinery. Subscribers can click here for detailed project reports.
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.
