PBF Energy buys Southern California refinery from Exxon for $537.5 million

PBF Energy has agreed to buy ExxonMobil's 155,000 bpd refinery in Torrance, California, for $537.5 million, officials with both companies announced on Thursday.

The deal follows PBF's acquisition earlier this year of the Chalmette refinery in Louisiana, which Exxon owned jointly with Venezuela's PdVSA.

After the acquisition, PBF will now have refineries in New Jersey, Delaware, Ohio, Louisiana and California, giving it a broader footprint in the US market and a total refining capacity of over 900,000 bpd.

"Coupled with the previously announced Chalmette acquisition, we will have increased our refining capacity by over 60% and added meaningful Gulf and West Coast assets to our refining system," said Tom Nimbley, PBF’s chief executive.

"We are excited to be adding a refinery with Torrance’s complexity and we look forward to entering the West Coast market," he added. "Upon completion of these two pending transactions, we will have operations spanning four PADDs and have diversified and increased our commercial footprint and flexibility."

The Torrance refinery, located on 750 acres in Torrance, California, is a high-conversion 155,000-bpd, delayed-coking refinery with a Nelson Complexity Index of 14.9. The facility is strategically positioned in Southern California with advantaged logistics connectivity that offers flexible raw material sourcing and product distribution opportunities primarily to the California, Las Vegas and Phoenix-area markets.

“Southern California is a very attractive market and we are excited to become a supplier in the region," said Tom O’Malley, PBF's executive chairman. "PBF’s management team has extensive experience operating in California and we are entering at a very attractive purchase price for the Torrance refinery.”

The Torrance refinery has operated at reduced output rates since a fire in February, but it will return to full production before the deal closes, according to PBF's statement.

Besides the refinery, Exxon's sale also includes a lubricants distribution center at Vernon, products terminals at Vernon and Atwood, and associated California pipelines and other logistics assets, including facilities at the Southwest terminal.

“The sale results from a strategic assessment of the site and how it fits with our refining portfolio,” said Jerry Wascom, president of ExxonMobil Refining & Supply Co.