Shell completes sale of Mobile refinery in Alabama to Vertex Energy

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Apr 01, 2022, 14:03 ET

HOUSTON, April 1, 2022 /PRNewswire/ -- Equilon Enterprises LLC d/b/a Shell Oil Products US, Shell USA, Inc., and Shell Chemical LP, subsidiaries of Shell plc (Shell), has completed the sale of its Chemical LP Refinery in Mobile, Alabama, to Vertex Energy Operating LLC (Vertex Energy), for $75 million in cash plus the value of the hydrocarbon inventory and other closing adjustments and accrued liabilities.

The agreement covers the sale of the Mobile refinery and associated co-located logistics infrastructure, including product racks, an associated dock, and the Blakeley Island Terminal.

As part of its Powering Progress strategy, Shell plans to consolidate its refining footprint to five core Energy and Chemicals parks globally. These locations, including Norco in the U.S. Gulf Coast, will maximize the integration benefits of conventional fuels and chemicals production while also offering new low carbon fuels and performance chemicals. They also offer future potential hubs for sequestration.

Shell has been providing energy to U.S. customers for more than 100 years and plans to remain an energy leader in the country for decades to come.

Notes to editors

On May 26, 2021, Shell and Vertex Energy announced that they had signed a sales agreement for Vertex Energy to acquire Shell's Mobile Refinery in Alabama.
A further amount of USD $165 million was received for the value attributed to the hydrocarbon inventory at the time of closing. The final amount for the hydrocarbon inventory will depend on volume measurements and average market prices for the month of April, which is expected to range between USD $150 to $175 million.
Shell will maintain branded businesses in Alabama and the U.S. Gulf Coast and will have crude supply and product offtake agreements with Vertex Energy to support its customers in the region.
Employees providing dedicated support to the refinery were offered employment with Vertex Energy with effect upon closing in accordance with the transaction.
Shell is one of America's leading energy companies with interests in 50 states employing more than 12,000 people. Shell's U.S. portfolio of operated companies and interests consists of oil, natural gas, petrochemicals, gasoline, lubricants, and other refined products along with renewables such as wind, solar, and mobility options like electric vehicle charging and hydrogen. In the U.S. Shell is also investing in an integrated power business that will provide electricity to millions of homes and businesses.

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SOURCE Shell