A new 625,000- bbl tank will be constructed to handle sour crude at PBF Energy’s refinery in Chalmette, Louisiana, after a deal was reached between the refiner and its master limited partnership affiliate, PBFX.
A 10-year storage services agreement was signed between PBF Holding and PBFX for tankage that should be ready by Nov. 1. PBF affiliate Chalmette Refining and PBFX Operating have entered into a 20-year lease on the premises where the tank will be located, and Chalmette Refining will manage the construction of the tank.
Under the storage agreement, PBFX will provide PBF Holding with storage services in return for storage fees. The agreement requires the parent company to pay a monthly fee of 60 cents/barrel of shell capacity, and the lease can be extended for various terms.
For more information, visit www. pbfenergy.com or call (973) 455-7500.
