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The Largest Refinery On The East Coast Of The United States Filed For Bankruptcy

- Jan 25, 2018 -

The U.S. Bloomberg News reported on January 22 that Philadelphia Energy Solutions PES, the owner of a refinery that provides more than a quarter of the refining capacity on the east coast of the United States, filed for bankruptcy a few days ago A bankruptcy plan can allow PES to remove some of the environmental costs.

According to PES CEO Greg, the restructuring will allow the company to set up a new company with the same shareholders. Court documents show that PES intends to use a sale to remove 300 million to 350 million US dollars in compliance costs.

PES operates the largest refinery serving the New York Harbor Gas and Diesel market, a joint venture between Carlyle Group and Energy Transfer Partners, a unit of the company Suncorp.

Court documents show that compliance costs include "RINs," and according to a federal plan, PES has been forced to spend 832 million U.S. dollars to buy PINs since 2012. PES said buying PINs creates an unpredictable and escalating unplanned compliance burden. This fee accounts for twice the cost of wages and nearly 1.5 times the cost of capital.

In a telephone interview on Monday, Greg said: "Without RINs, we will compete with anyone in the world."