PBF Energy 2012 Annual Report Download - page 18

The following table approximates the Toledo refinery’s major process unit capacities. Unit capacities are
shown in barrels per stream day.
Refinery Units
Nameplate
Capacity
Crude Distillation Unit .............................. 170,000
Fluid Catalytic Cracking Unit (FCC) ................... 79,000
Hydrotreating Units ................................ 95,000
Hydrocracking Unit (HCC) .......................... 45,000
Catalytic Reforming Units ........................... 45,000
Alkylation Unit (Alky) .............................. 10,000
Polymerization Unit (Poly) ........................... 7,000
UDEX Unit (BTX) ................................. 16,300
Feedstocks and Supply Arrangements. We have a short term crude oil acquisition agreement with MSCG
pursuant to which we direct MSCG to purchase crude and other feedstocks for Toledo. MSCG purchases these
products on the spot market. Accordingly, MSCG enters into, on our behalf, hedging arrangements to protect
against changes in prices between the time of purchase and the time of processing the feedstocks. In addition to
procurement, MSCG arranges transportation and insurance for the crude and feedstock supply and we pay
MSCG a per barrel fee for their procurement and logistics services. We pay MSCG on a daily basis for the
corresponding volume of crude or feedstocks two days after they are consumed in conjunction with the refining
process. This arrangement helps us reduce the amount of investment we are required to maintain in crude
inventories and, as a result, helps us manage our working capital.
Product Offtake. Toledo is connected, via pipelines, to an extensive distribution network throughout Ohio,
Illinois, Indiana, Kentucky, Michigan, Pennsylvania and West Virginia. The finished products are transported on
pipelines owned by Sunoco Logistics Partners L.P. and Buckeye Partners. In addition, we have proprietary
connections to a variety of smaller pipelines and spurs that help us optimize our clean products distribution. A
significant portion of Toledo’s gasoline and ULSD are distributed through the approximately 28 terminals in this
network.
In March 2011, we entered into an agreement with Sunoco whereby Sunoco purchases gasoline and
distillate products representing approximately one-third of the Toledo refinery’s gasoline and distillates
production. The agreement has a three year term, subject to certain early termination rights. We sell the bulk of
the petrochemicals produced at the Toledo refinery through short-term contracts or on the spot market and the
majority of the petrochemical distribution is done via rail.
Tankage Capacity. The Toledo refinery has total storage capacity of approximately 4.0 million barrels. The
Toledo refinery receives its crude through pipeline connections and a truck rack. Of the total, approximately
0.4 million barrels are dedicated to crude oil storage with the remaining 3.6 million barrels allocated to
intermediates and products.
Energy and Other Utilities. Under normal operating conditions, the Toledo refinery consumes approximately
17,000 MMBTU per day of natural gas. The Toledo refinery purchases its electricity from a local utility and has a
long-term contract to purchase hydrogen and steam from a local third party supplier. In addition to the third party
steam supplier, Toledo consumes a portion of the steam that is generated by its various process units.
Customers
We sell a variety of refined products to a diverse customer base. We currently have product offtake
agreements in place for a large portion of our clean product sales. For the year ended December 31, 2012, MSCG
and Sunoco accounted for 57% and 10% of our revenues, respectively. The remainder of our refined products are
primarily sold through short-term contracts or on the spot market.
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