Refinery stalls $1B expansion; adds oil by rail
With no pipeline, PBF routes cargoes by land
Refinery stalls $1B expansion; adds oil by rail
Joseph N. DiStefano
PBF Energy's state-subsidized Delaware City oil refinery has "quietly" postponed a $1 billion renovation and expansion project (under previous owners, the plant processed high-sulfur foreign crude cargoes from Atlantic tanker ships) has switched to North Dakota and Alberta shale-oil producers, and is shipping it cross-country by rail tank cars, reports the Wilmington News-Journal's Jeff Montgomery here.
PBF had threatened to cancel its expansion if it didn't get quick EPA and state pollution permits. Still, state officials said they welcomed the plant's increasing production.
N-J says neighbors worry about the traffic and environmental impact of increased Norfolk Southern oil-train traffic, in the absence of Midwest-to-East Coast pipelines.
My colleague Andrew Maykuth reminds me that Carlyle Group plans a similar North American rail strategy to supply its newly acquired South Philly refinery.
As one of our Wilmington readers notes, this is what "Energy Independence" looks like; and it keeps Americans working.
Isn't this the kind of energy independence that we need to avoid more dealing with the Middle East and Chavez. Of course, pipelines will be better but in the meantime, we are increasing high paying jobs at the refinery and on the railroads. This is certainly better than the Biden Fisker debacle.— Tired of Journos
