HOUSTON Jan 2 Independent U.S. refiner PBF
Energy in June will end its refined product offtake
agreements with Morgan Stanley and sell fuels directly from its
East Coast refineries, the company said on Monday.
Those agreements with Morgan Stanley Capital Group Inc cover
the sales of refined products from PBF Energy's U.S. East Coast
refineries in Delaware and New Jersey.
Under the agreements, Morgan Stanley markets PBF Energy's
fuels. Morgan Stanley's physical trading activity in key U.S.
markets has been contracting in the face of changing market
dynamics and diminished risk appetite because of growing
regulations and capital constraints.
PBF Energy revealed its subsidiaries' pending termination of
the offtake deals in an announcement that the company has
increased its existing revolving credit agreement to $1.575
billion from $1.375 billion in commitments.
"PBF's ability to sell products directly from our East Coast
refineries should enhance our profitability in the second half
of 2013," Chief Executive Tom Nimbly said in a statement.
Those refineries are 182,200 barrels-per-day (bpd) Delaware
City and 160,000 bpd Paulsboro, New Jersey.