Wednesday, 02 January 2013 19:37
HOUSTON: Independent US refiner PBF Energy in June will end its refined product offtake agreements with Morgan Stanley and sell fuels directly from its East Coast refineries, the company said on Monday.
Those agreements with Morgan Stanley Capital Group Inc cover the sales of refined products from PBF Energy's US East Coast refineries in Delaware and New Jersey.
Under the agreements, Morgan Stanley markets PBF Energy's fuels. Morgan Stanley's physical trading activity in key US markets has been contracting in the face of changing market dynamics and diminished risk appetite because of growing regulations and capital constraints.
PBF Energy revealed its subsidiaries' pending termination of the offtake deals in an announcement that the company has increased its existing revolving credit agreement to $1.575 billion from $1.375 billion in commitments.
"PBF's ability to sell products directly from our East Coast refineries should enhance our profitability in the second half of 2013," Chief Executive Tom Nimbly said in a statement.
Those refineries are 182,200 barrels-per-day (bpd) Delaware City and 160,000 bpd Paulsboro, New Jersey.
Center>Copyright Reuters, 2013