New York-based oil and gas company Hess Corp. (HES: Quote) said it would pursue the sale of its terminal network in the United States. Also, Hess reported that it would complete its exit from the refining business by closing its Port Reading, New Jersey refinery. The terminal network is situated along the U.S. East Coast and has a total of 28 million barrels of storage capacity in 19 terminals, 12 of which have deep water access.
The company added that it would continue its long term commitment to the Retail and Energy Marketing businesses and take all the necessary steps to ensure supply security, competitive prices and high quality service for its customers.
The Port Reading refinery, which would be closed by February end, is comprised solely of a Fluid Catalytic Cracking unit and it chiefly manufactures gasoline and components used for blending heating oil. The refinery incurred losses in two of the past three years. The financial outlook for the facility is likely to remain challenged due to the requirement for future expenditures to comply with environmental regulations for low sulfur heating oil and the weak forecast for gasoline refining margins.
According to John Hess, Chairman and CEO, ‘By closing the Port Reading refinery and selling our terminal network, Hess will complete its transformation from an integrated oil and gas company to one that is predominantly an exploration and production company and be able to redeploy substantial additional capital to fund its future growth opportunities.”
The company has retained Goldman, Sachs & Company as its financial advisor for the divestiture of the terminal network.
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by RTT Staff Writer
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