PBF Energy 2015 Annual Report Download - page 17

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rack located adjacent to the refinery and a 23-mile interstate pipeline that are used to distribute clean products,
which were transferred to PBFX in conjunction with its acquisition of the Delaware City Products Pipeline and
Truck Rack (as defined below) in May 2015.
The Delaware City refinery has a throughput capacity of 190,000 bpd and a Nelson Complexity Index of
11.3. As a result of its configuration and process units, Delaware City has the capability of processing a slate of
heavy crudes with a high concentration of high sulfur crudes and is one of the largest and most complex refineries
on the East Coast. The Delaware City refinery is one of two heavy crude coking refineries, the other being Paulsboro,
on the East Coast of the United States with coking capacity equal to approximately 25% of crude capacity.
The Delaware City refinery primarily processes a variety of medium to heavy, sour crude oils, but can run
light, sweet crude oils as well. The refinery has large conversion capacity with its 82,000 bpd FCC unit, 47,000
bpd FCU and 18,000 bpd hydrocracking unit with vacuum distillation. Hydrogen is provided via the refinery’s
steam methane reformer and continuous catalytic reformer. The Delaware City refinery predominantly produces
gasoline, diesel fuels and heating oil as well as certain lower value products such as petroleum coke and LPGs.
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 expired on December 31, 2015. Pursuant to the agreement as amended in October 2012, we directed
Statoil to purchase waterborne crude and other feedstocks for Delaware City and Statoil purchased these products
on the spot market or through term agreements. 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 arranged transportation and insurance for these waterborne deliveries
of crude and feedstock supply and we paid Statoil a per barrel fee for their procurement and logistics services.
Subsequent to the termination of the Statoil supply agreement, we purchase all of our crude and feedstock needs
independently from a variety of suppliers on the spot market or through term agreements.
Product Offtake. We currently market and sell all of our refined products independently to a variety of
customers on the spot market or through term agreements. 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.