Refiner PBF Energy is planning to run WTI crude at its eastern US refineries in the second quarter taking advantage of a waiver of the Jones Act, the company said today.
With the Jones Act "on the shelf for a period of time", PBF can run non-traditional crudes to the east coast, including WTI and other US barrels, chief executive Matthew Lucey said on an earnings call. PBF's east coast facilities include the 171,000 b/d Delaware City refinery in Delaware and the 100,000 b/d Paulsboro refinery in New Jersey.
The refineries run a variety of heavy crude slates, which they can receive through waterborne cargoes or by rail, but can also process lighter, sweeter oil like Bakken crude.
The shipments would take advantage of a Jones Act waiver first issued on 17 March and later extended by 90 days through 15 August. US president Donald Trump approved the waiver of domestic shipping requirements in an attempt to ease a spike in commodity prices caused by the US-Iran war.
PBF earlier this month shipped heavy crude between two points in California on a foreign-flagged ship, the second instance of the Jones Act waiver being used to move crude cargoes, according to ship-tracking data from Kpler.
Phillips 66 has also shipped oil using a Jones Act waiver, moving Bakken crude from its Nederland terminal in Texas to supply its 258,500 b/d Bayway refinery in New Jersey.
