Equilon Enterprises LLC d/b/a Shell Oil Products U.S., Shell Oil Company and Shell Chemical LP, subsidiaries of Royal Dutch Shell plc (Shell), reach an agreement for the sale of the Mobile Chemical LP Refinery in Mobile, AL, to Vertex Energy Operating LLC (Vertex Energy). Vertex Energy is a U.S. owned, Texas-based specialty refiner of alternative feedstocks and marketer of high purity petroleum products.
The Mobile refinery, 100% Shell owned, is located near the U.S. 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, according to the company. 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 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. The energy and chemicals parks will produce more low-carbon fuels and specialty chemicals for customers, according to Shell.
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 consideration for this transaction is $75 million in cash plus the value of the hydrocarbon inventory. The transaction is expected to close in Q4 2021, subject to regulatory approvals.
For more information, visit: www.shell.com
