Chemical LP Refinery Sale Finalized

SARALAND, Ala. — Equilon Enterprises LLC d/b/a Shell Oil Products US, Shell Oil Co. and Shell Chemical LP have completed the $75-million sale of their 914-acre Chemical LP Refinery in Saraland to Houston-based Vertex Energy Operating LLC, Business Alabama reports. The deal, announced in May 2021 (Shell To Sell Refinery To Vertex), also includes $25 million in capital expenditures and approximately $165 million for hydrocarbon inventory. In addition to a 91,000-barrel-per-day refinery, the deal includes 3.2 million barrels of storage, a dock and Shell’s Blakely Island terminal. Benjamin P. Cowart, president and CEO of Vertex, added, “As previously disclosed, we intend to complete the planned conversion of the Mobile refinery’s hydrocracking unit by year-end 2022, positioning us to commence production of renewable diesel fuel at the site beginning in the first quarter 2023. As we look out to the remainder of 2022, we expect refined product margins on conventional fuels production at the Mobile refinery to remain at elevated levels, given strong regional demand conditions, while our legacy assets continue to benefit from favorable product spreads….” Shell will continue to have crude oil supply and product offtake agreements with Vertex to support Shell customers on the Gulf Coast.