PBF Energy 2013 Annual Report Download - page 17

10
The following table approximates the Paulsboro refinery’s major process unit capacities. Unit capacities
are shown in barrels per stream day.
Refinery Units
Nameplate
Capacity
Crude Distillation Units 168,000
Vacuum Distillation Units 83,000
Fluid Catalytic Cracking Unit (FCC) 55,000
Hydrotreating Units 141,000
Catalytic Reforming Unit (CCR) 32,000
Alkylation Unit (Alky) 11,000
Lube Oil Processing Unit 12,000
Delayed Coking Unit (Coker) 27,000
Propane Deasphalting Unit 11,000
Feedstocks and Supply Arrangements. We have a contract with Saudi Aramco pursuant to which we have
been purchasing up to approximately 100,000 bpd of crude oil from Saudi Aramco that is processed at Paulsboro.
The crude purchased is priced off ASCI.
In addition, under a crude and feedstock supply agreement with Statoil that was terminated effective
March 31, 2013, we directed Statoil to purchase crude and other feedstocks for Paulsboro and Statoil purchased
the crude and feedstocks on the spot market. Accordingly, Statoil entered 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 generally arranged transportation and insurance for the crude and feedstock supply
and we paid Statoil a per barrel fee for their procurement and logistics services. Statoil held title to the crude and
feedstocks until we ran the crude or feedstocks through our process units. We paid Statoil on a daily basis for the
corresponding volume of crude or feedstocks that were consumed in conjunction with the refining process.
Product Offtake. Prior to June 30, 2013, we sold the bulk of Paulsboro’s clean products to MSCG through
our offtake agreement. With the exception of certain jet fuel and lubricant sales, MSCG purchased 100% of our
finished clean products and intermediates under the offtake agreement. 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 to support the operations of the Paulsboro 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 Products located at Paulsboro upon termination of the 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 Paulsboro refinery has total storage capacity of approximately 7.5 million barrels.
Of the total, approximately 2.1 million barrels are dedicated to crude oil storage with the remaining 5.4 million
barrels allocated to finished products, intermediates and other products.
Energy and Other Utilities. Under normal operating conditions, the Paulsboro refinery consumes
approximately 30,000 MMBTU per day of natural gas. The Paulsboro refinery is virtually self-sufficient for its
electrical power requirements. The refinery supplies approximately 90% of its 63 MW load through a combination
of four generators with a nameplate capacity of 78 MW, in addition to a 30 MW gas turbine generator and two 15
MW steam turbine generators located at the Paulsboro utility plant. In the event that Paulsboro requires additional
electricity to operate the refinery, supplemental power is available through a local utility. Paulsboro is connected