Shell To Sell Refinery To Vertex
Equilon Enterprises LLC d/b/a Shell Oil Products US, Shell Oil Company and Shell Chemical LP, subsidiaries of Royal Dutch Shell plc, announced they have agreed to sell the Mobile Chemical LP Refinery in Mobile to Vertex Energy Operating LLC. Vertex is a U.S.-owned, Texas-based specialty refiner of alternative feedstocks and marketer of high-purity petroleum products. The agreement covers the sale of the Mobile refinery and associated colocated logistics infrastructure, including product racks, an associated dock and the Blakeley Island Terminal. The deal, valued at $75 million in cash plus the value of the hydrocarbon inventory (currently $65 million-$85 million), is expected to close in the fourth quarter, subject to regulatory approvals. Shell said the divestment is part of its strategy to reduce its global refinery footprint to core sites integrated with its trading hubs, chemical plants and marketing businesses. It added that it “is grateful to the Mobile community for the collaboration and support over the past two decades.” All employees providing dedicated support to the Mobile Refinery are to be offered employment with Vertex.
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