Shell has sold its Mobile Chemical LP Refinery in Alabama to Vertex Energy, a Texas-based specialty refiner of alternative feedstocks and marketer of high purity petroleum products, for $75m, plus the value of the hydrocarbon inventory.
The divestment is part of Shell’s strategy to reduce its global refinery footprint to core sites integrated with the company’s trading hubs, chemicals plants and marketing businesses. These high-value energy and chemicals parks will produce more low-carbon fuels and specialty chemicals for its customers, it said.
The Mobile refinery, 100% Shell owned, is located near the US Gulf Coast, at the north end of Mobile Bay in Alabama. The refinery is designed to process approximately 90,000 barrels per day of crude oil and products that include LPG, diesel fuel, jet fuel and gasoline. It also produces low-sulfur VGO/Heavy Olefin Feed and Benzene. It has the optionality to run as a stand-alone refinery, produce base oils or chemicals feedstock.
“The sale of the Mobile refinery shows that we are making good progress delivering on our manufacturing strategy,” said Robin Mooldijk, Shell’s executive vice-president of manufacturing. “We’re becoming better positioned to deliver resilient returns and meet the increasingly diverse needs of our customers.”
The agreement covers the sale of the Mobile refinery and associated co-located logistics infrastructure, including product racks, an associated dock, and the Blakeley Island Terminal. The hydrocarbon inventory will be valued at closing based on actual volumes and prevailing market prices. The current value of the hydrocarbon inventory would range from $65 to $85m, assuming current market prices and historic inventory volumes under normal operating conditions.
As part of this deal, Shell and Vertex Energy will have crude supply and product offtake agreements to support Shell’s customers in the region.
Shell said it is grateful to the Mobile community for the collaboration and support over the past two decades and added that all employees providing dedicated support to the Mobile Refinery will be offered employment with Vertex Energy.
For more information visit: www.shell.com
