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The imminent shut down of a key East Coast fuel refinery was averted earlier today when it was announced Carlyle Group would take over the plant.According to the Wall Street Journal, the Sunoco plant outside Philadelphia processes 25 per cent of the East Coast’s fuel supply.
It was supposed to be shuttered last month.
Instead, Carlyle plans to invest more than $200 million to upgrade the plant’s facilities and get them plugged into the country’s newly abundant oil supply.
The Journal’s Ryan Dezember and Jerry DiColo write that because the country’s current pipeline system doesn’t adequately serve East Coast refineries, they’ve had to pay more for more expensive, imported oil. Meanwhile, competitors on the Gulf Coast and Midwest, which are closer to domestic oil fields, save.
GasBuddy.com’s Gregg Laskoski said the plant’s closure “would have hurt the regional economy and reduced east coast gasoline supply at the same time.”