The company has retained Credit Suisse Securities (USA) LLC to assist it review technique.
It would try to sell its 330,000-b/cd refinery in Philadelphia and 175,000-b/cd facility at Marcus Hook, Pa. If unsuccessful, it will idle the principle processing units in July 2012.
Key processing capacities at Philadelphia are 113,500 b/cd of fluid catalytic cracking, 68,000 b/d of catalytic reforming, 85,600 b/cd of catalytic hydrotreating for pretreatment of reformer feeds, and 78,000 b/cd of cat hydrotreating for diesel desulfurization. The Philadelphia refinery also has 16,seven-hundred b/d of alkylation (hydrofluoric acid) capability.
The Marcus Hook refinery has capacities of 93,000 b/cd for FCC, 15,600 b/cd for cat reforming, 36,000 b/cd of cat hydrotreating for reformer feed, and 12,000 b/cd of posthydotreating for FCC naphtha. It has 10,000 b/d of alkylation (sulfuric acid) capability.
Sunoco has been restructuring for a number of years. Earlier this yr it completed the sale of its 170,000 b/d refinery in Toledo, Ohio, to Toledo Refining Co. LLC, a unit of PBF Holding Co. LLC (OGJ On-line, Mar. 1, 2011).
In 2010 it shut a one hundred fifty,000 b/d refinery at Eagle Level, NJ, and [in 2009 — D.R.] sold an 85,000-b/d refinery in Tulsa to Holly Corp. (OGJ On-line, June sixteen, 2010).
It additionally bought its polypropylene [PP — D.R.] enterprise, Sunoco Chemicals Inc., to Braskem SA, and shut down a PP plant in Texas (OGJ On-line, Apr. 6, 2010). And it’s separating its metallurgical coke business by way of an initial public providing of shares in SunCoke Energy.
The corporate expects to incur pretax noncash fees of $1.9-2.2 billion in the third quarter because it exits refining. The fees relate to impairment of plant and tools. If it should idle course of models, it expects extra pretax expenses of as a lot as $500 million related to contract terminations, staffing prices, and severance.
Sunoco has been expanding its remaining enterprise models, retail advertising and marketing and logistics.
The corporate has greater than four,900 branded retail areas in 24 states, with APlus comfort shops operated by it or sellers in 600 of the retail shops.
It additionally holds 35% [sic — D.R.] curiosity in and is normal accomplice of Sunoco Logistics Companions LP, a publicly traded grasp restricted partnership that operates three,350 miles of crude oil trunkline, 500 miles of crude oil gathering strains, and a couple of,500 miles of oil product pipelines. [Full story]
(Please see Sunoco’s webpage/information room: “Sunoco to Exit Refining and Conduct Strategic Review of the corporate,” Sept 6, 2011. As of Jan 1, 2011, Sunoco, with crude oil distillation capacity of its three refineries—Marcus Hook, Toledo and Philadelphia—of 673,000 barrels per day, was ranked 10th on the record of prime 20 U.S. refiners—please see my submit “High 20 Largest Refining Corporations/Refiners within the U.S. as of Jan 1, 2011.” PBF Energy Company LLC on Tuesday, March 1, 2011, announced that its subsidiary, Toledo Refining Firm LLC, has accomplished its purchase of the Toledo Refinery in Ohio from Sunoco, Inc. It’s worthy of note that Sunoco has owned refineries for 117 years. Formerly identified because the Solar Oil Company of Ohio, it bought its first refinery in 1894.