UPDATE 1-PBF Energy says expects to run more Mexican crude grades

miércoles 30 de abril de 2014 15:43 GYT
 

(Updates with detail on Mexican crudes, adds desire to add crude by rail in Ohio)

* Growing domestic crude glut on Gulf Coast pushing Mexican grades to East Coast market

* Company interested in adding crude by rail at Ohio refinery

By Kristen Hays

HOUSTON, April 30 (Reuters) - Independent refinery PBF Energy expects its U.S. East Coast refineries to process more Mexican crude grades as a growing glut of inland U.S. crude on the Gulf Coast pushes shipments of Mexican output further north, Chairman Tom O'Malley told analysts on Wednesday.

He said Gulf Coast refineries can back out imports as more domestic crude flows to the region from inland shale plays, such as the Eagle Ford shale and Permian Basin in Texas. That will increasingly push Mexican barrels to the East Coast market.

"I think you should look at Mexican grades becoming a regular part of our diets," O'Malley said during the company's first-quarter earnings call.

As domestic crudes increasingly make their way to the Gulf market, "Gulf Coast refiners are pushing out barrels they have traditionally handled," O'Malley said, making more medium-grade crudes available to the East Coast market.

He said the shift gives PBF more flexibility in choosing the best-priced crudes day to day, and the company also has seen other South American crudes coming to the market that PBF has never run.   Continuación...