Reuters has the details on a possible buyer for Sunoco’s Philadelphia refinery. The plant processes a quarter of the gasoline used on the east coast, but Sunoco wants to sell it or shut it down.
The refinery’s sale has major economic consequences: if Sunoco can’t find a buyer and shuts the refinery down this summer, regional gas prices could skyrocket.
(Reuters) – Preferred Sands LLC, a unit of a privately owned Pennsylvania-based investment firm, is seen as a possible frontrunner to buy Sunoco Inc’s (SUN.N) Philadelphia refinery, two sources familiar with the bidding process said on Monday.
As discussions intensify with a handful of varied firms that are said to be considering a bid for the 335,000 barrel per day (bpd) plant, Preferred is working with a group of local pension funds as well as more traditional financiers to put together a deal.
“We made a very substantial bid on the refinery,” confirmed Mike O’Neill, founder and chief executive officer of Preferred Unlimited, the parent company when contacted by Reuters.
“We will continue to run it as a refinery and use our substantial logistics experience and leverage our oil industry logistic knowledge.”