27th May 2021 05:47
(Alliance News) -Â Royal Dutch Shell PLC late Wednesday said it has agreed to sell the Mobile Chemical LP Refinery in Alabama to Vertex Energy Operating LLC.
"The divestment is part of Shell's strategy to reduce its global refinery footprint to core sites integrated with the company's trading hubs, chemicals plants and marketing businesses," the FTSE 100-listed oil major explained.
The refinery is wholly owned by Shell and is located at the north end of Mobile Bay in Alabama. It is designed to process approximately 90,000 barrels per day of crude oil and products that include LPG, diesel fuel, jet fuel and gasoline.
Vertex is a Texas-based specialty refiner of alternative feedstocks and marketer of high purity petroleum products.
The consideration for the deal is USD75 million in cash plus the value of hydrocarbon inventory. The inventory will be valued at closing based on actual volumes and prevailing market prices, with its current value ranging from USD65 million to USD85 million.
"The sale of the Mobile refinery shows that we are making good progress delivering on our manufacturing strategy," said Robin Mooldijk, Shell's executive vice president for Manufacturing. "We're becoming better positioned to deliver resilient returns and meet the increasingly diverse needs of our customers.
The sale is expected to complete in the fourth quarter of this year.
By Lucy Heming;Â [email protected]
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