PBF Energy Announces Plans to Repair Martinez Refinery Following Fire Incident

PBF Energy Inc., a leading independent refiner in North America, has provided an essential update regarding its Martinez refinery, which sustained significant damage from a fire on February 1, 2025. Located in California, this facility, which has a capacity of 157,000 barrels per day, is currently inactive but has plans for gradual repairs and a phased restart in the upcoming months.

Phased Restart Overview

The company has assessed the situation and has determined to move forward with the necessary repairs. The restarting operations will occur in two key stages. Initially, certain units, including the crude unit, are anticipated to resume operations in the early part of the second quarter of 2025. Following this, additional units, primarily those slated for turnaround during the first quarter, are expected to be operational by the fourth quarter of 2025. During the first stage of the restart, PBF Energy estimates that throughput will reach between 85,000 to 105,000 barrels per day, while the refinery will produce limited quantities of gasoline, jet fuel, and other intermediates.

Financial Considerations

PBF Energy expects the repair costs related to the fire-damaged units will predominantly be covered by their insurance. However, the company will still shoulder a deductible and retention amounting to $30 million. Additionally, PBF anticipates that its business interruption insurance will substantially mitigate the financial impact from the downtime, covering ongoing expenses and potential lost profits beginning April 3, 2025, until full operational restoration is achieved.

Commitment to Safety and Community

Matt Lucey, the President and CEO of PBF, expressed gratitude towards the first responders who aided during the fire incident. He emphasized the company's dedication to safely restoring the operations of the Martinez refinery. Lucey acknowledged the inconvenience the shutdown has caused to the community and thanked the employees and contractors for their ongoing support in bringing the refinery back online. He reiterated the importance of the facility in supplying crucial transportation fuels, particularly for California, where demand is high.

PBF Energy has reaffirmed its commitment to operate in a safe and environmentally responsible manner, which has been a cornerstone of its operations. Through careful planning and adherence to regulatory requirements, the company aims to minimize disruptions while ensuring that safety remains the primary focus during these repairs.

Looking Ahead

As PBF Energy navigates through the recovery process, stakeholders will be closely monitoring the progress of the repairs and the timeline for the restart. The company is aware of the challenges that may lie ahead, including potential regulatory hurdles and the availability of necessary components for the refinery. Moving forward, PBF Energy remains resolute in its efforts to restore the Martinez refinery fully, ensuring that it continues to be a vital part of the local and wider petroleum supply chain in North America.

In conclusion, while the events of early February 2025 brought significant challenges, PBF Energy is focused on a route to recovery, showcasing resilience through practical solutions and unwavering commitment to safety and community support.