PBF Energy Inc. has announced the commencement of operations at its St. Bernard renewable fuel joint venture located in New Orleans. According to the company, the first products from the facility were sold in July.
Operational Units and Production
The pre-treatment and renewable diesel production units at the facility are currently operational. In July, the pre-treatment unit (PTU) started supplying feedstock to the diesel unit. Additionally, the first batch of renewable fuels from the facility, situated at PBF’s Chalmette refinery in Louisiana, was sold during the third quarter of this year.
Processing Capacity and Output
The facility is anticipated to have an annual processing capacity of approximately 1.1 million tons of raw materials. It is expected to produce around 7.3 million barrels of renewable diesel annually. PBF Energy Inc. is managing the project through its 50-50 joint venture with Italian energy major, Eni SpA.
Partnership Details
The partnership between PBF Energy Inc. and Eni SpA was finalized in late June. As part of the agreement, PBF received $431 million initially, followed by an additional $414.6 million on Tuesday. This amount includes $10.6 million out of a total $50 million contingent consideration related to the startup of the PTU.
Future Payments and Milestones
The remaining contingent consideration will be paid after reaching certain project milestones and performance criteria as outlined by PBF Energy Inc.
Other Refinery Upgrades
PBF Energy Inc. has also recently completed work on its hydrocracker at the Torrance, California refinery with a capacity of 166,200 barrels per day. Additionally, the company plans to carry out maintenance on both the hydrocracker and alkylation units at the refinery during the fall.
Refinery Throughput Forecast
The company is expecting a full-year throughput range of 915,000 to 975,000 barrels per day (b/d) across its six U.S. oil refineries. For the third quarter, PBF has projected a total system throughput of 925,000 to 985,000 b/d.
Regional Breakdown
- East Coast Refineries: The forecasted throughput for the East Coast refineries is expected to be between 310,000 and 330,000 b/d.
- Mid-continent Refineries: The forecasted throughput for the Mid-continent refineries is expected to be between 150,000 and 160,000 b/d.
- Gulf Coast Facilities: The forecasted throughput for the Gulf Coast facilities is expected to be between 170,000 and 180,000 b/d.
- West Coast Plants: The forecasted throughput for the West Coast plants is expected to be between 295,000 and 315,000 b/d.
Second Quarter Performance
During the second quarter, the company reported an average production of 945,700 b/d, which was lower than the previous year’s average of 958,800 b/d. The average throughput for the quarter was 935,800 b/d, compared to 958,800 b/d in Q2 2022.
Refining Margins
PBF achieved a gross refining margin of $13.62 per barrel in the quarter, experiencing a decrease from $30.41 per barrel during the same period last year.
Production Mix
The production mix in the second quarter consisted of approximately 48% gasoline, 33% distillates and distillate blendstocks, with the remaining percentage allocated to lubes, chemicals, and other products.
Financial Performance
PBF reported a net income of $1.03 billion for Q2, showing a decline from $1.236 billion in Q2 2022.
