PBF Energy 2015 Annual Report Download - page 19

12
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 under this contract is priced off ASCI.
Product Offtake. Prior to June 30, 2013, we sold the bulk of Paulsboro’s clean products to MSCG through
an 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 under which we sell
approximately 35% of our Paulsboro refinery's gasoline production.
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 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.
On May 29, 2015, the Company and J. Aron amended the Inventory Intermediation Agreement pursuant to which
certain terms of the existing inventory intermediation agreements were amended, including, among other things,
pricing and an extension of the term for a period of two years from the original expiry date of July 1, 2015, subject
to certain early termination rights. In addition, the A&R Intermediation Agreements include one-year renewal
clauses by mutual consent of both parties.
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
to the grid via three separate 69 KV aerial feeders and has the ability to run entirely on imported power. Steam is
primarily produced by three boilers, each with continuous rated capacity of 300,000-lb/hr at 900-psi. In addition,
Paulsboro has a heat recovery steam generator and a number of waste heat boilers throughout the refinery that
supplement the steam generation capacity. Paulsboro’s current hydrogen needs are met by the hydrogen supply
from the reformer. In addition, the refinery employs a standalone steam methane reformer that is capable of