The American development company Hilco Redevelopment Partners (HRP) has completed a $225.5 million deal with Philadelphia Energy Solutions (PES) to acquire the site of the largest and oldest East Coast oil refining complex, according to Reuters.
PES put its 335,000 barrels of oil per day (bbl/d) Philadelphia refinery up for sale and filed for bankruptcy after a fire and series of explosions decimated the refinery last summer.
“We see the investment as a once-in-a-generation investment. These 1,300 acres are very strategically located from a supply chain perspective on the East Coast,” said HRP Chief Executive Officer Roberto Perez. He also flagged the site’s rail yards, access to waterborne shipments, and pipeline connectivity.
Due to the explosion, there is significant environmental damage present at the site. The responsibility of the clean up falls to HRP and former refinery owner Sunoco. According to Perez, the estimated clean up cost is expected to be hundreds of millions of dollars.
HRP has no intentions of restarting operations at the plant and instead will embark on the demolition of the massive refining complex. The project is expected to take in the region of ten years to complete.
The Philidelphia refinery was used for oil refining dating back 150 years and will now be transformed into a mixed-use industrial park.