SG Preston proposes to acquire 335,000 barrel-per-day PES refinery

In Pennsylvania, SG Preston told Reuters that it is potentially buying the Philadelphia Energy Solutions refinery, which was damaged in a fire in June. S.G. Preston would convert the refinery and 1,300 acres to produce renewable diesel, marine diesel, and jet fuel, mostly from waste fats and oils as the feedstock.

“Financial terms of the proposal could not immediately be learned” by Reuters, and “is the first company to identify itself as a potential buyer of the refinery.”

As reported in the Digest in 2016, S.G. Preston signed a purchase agreement with JetBlue for more than 33 million gallons of blended jet fuel per year for at least 10 years, making it one of the largest renewable jet fuel purchase agreements in aviation history, and the largest, long-term, binding commitment by any airline globally for HEFA (hydro-processed esters and fatty acids) based renewable jet fuel. The fuel consists of 30 percent renewable jet fuel blended with 70 percent traditional Jet-A fuel.

According to Reuters, “Company representatives this week met with local trade groups, union officials and members of the city’s economic development agency to discuss the proposal, the sources said.”