PBF Energy 2013 Annual Report Download - page 15

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The following table approximates the Delaware City refinery’s major process unit capacities. Unit
capacities are shown in barrels per stream day.
Refinery Units
Nameplate
Capacity
Crude Distillation Unit 190,000
Vacuum Distillation Unit 102,000
Fluid Catalytic Cracking Unit (FCC) 82,000
Hydrotreating Units 160,000
Hydrocracking Unit 18,000
Catalytic Reforming Unit (CCR) 43,000
Benzene / Toluene Extraction Unit 15,000
Butane Isomerization Unit (ISOM) 6,000
Alkylation Unit (Alky) 11,000
Polymerization Unit (Poly) 16,000
Fluid Coking Unit (FCU/ Fluid Coker) 47,000
Feedstocks and Supply Arrangements. In April 2011, we entered into a crude and feedstock supply agreement
with Statoil that expires on December 31, 2015. Pursuant to the agreement as amended in October 2012, we direct
Statoil to purchase waterborne crude and other feedstocks for Delaware City and Statoil purchases these products
on the spot market or through term agreements. Accordingly, Statoil 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, Statoil arranges transportation and insurance for these waterborne deliveries of crude and
feedstock supply and we pay Statoil a per barrel fee for their procurement and logistics services. Statoil generally
holds title to the waterborne crude and feedstocks until we process the crude or feedstocks through our process
units. We pay Statoil on a daily basis for the corresponding volume of crude or feedstocks that are consumed in
conjunction with the refining process. This crude supply and feedstock 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. Prior to June 30, 2013, we sold the bulk of Delaware City’s clean products to MSCG
through an offtake agreement. Under the offtake agreement, MSCG purchased 100% of our finished clean products
at Delaware City, which included gasoline, heating oil and jet fuel, as well as our intermediates. During the term
of the offtake agreement, we sold the remainder of our refined products directly to a variety of customers on the
spot market or through term agreements. Subsequent to the termination of the offtake agreement, we market and
sell all of our refined products independently to a variety of customers on the spot market or through term agreements.
Inventory Intermediation Agreement. On June 26, 2013, the Company entered into an Inventory
Intermediation Agreement with J. Aron ("Inventory Intermediation Agreement") to support the operations of the
Delaware City refinery, which commenced upon the termination of the product offtake agreement with MSCG.
Pursuant to the Inventory Intermediation Agreement, J. Aron purchased all of the finished and intermediate products
(collectively the “Products”) located at the refinery upon termination of the MSCG product offtake agreement. J.
Aron purchases the Products produced and delivered into the refinery's storage tanks on a daily basis. J. Aron
further agrees to sell to us on a daily basis the Products delivered out of the refinery's storage tanks.
Tankage Capacity. The Delaware City refinery has total storage capacity of approximately 10.0 million
barrels. Of the total, 18 tanks with approximately 3.6 million barrels of storage capacity are dedicated to crude oil
and other feedstock storage with the remaining approximately 6.4 million barrels allocated to finished products,
intermediates and other products.
Energy and Other Utilities. Under normal operating conditions, the Delaware City refinery consumes
approximately 55,000 MMBTU per day of natural gas. The Delaware City refinery has a 280 MW power plant