The Carlyle Group will get a majority stake in Sunoco's Philadelphia refinery with the promise of capital investment. The new venture will be renamed Philadelphia Energy Solutions. The deal has plenty of sweeteners:
$25 million in Pennsylvania State grants
The Commonwealth will provide grants to help build a high-speed train unloading facility at the refinery, support a major capital project and upgrade the cracker at the refinery.
Tax exempt financing and other tax saving moves
Officials said they are also moving to include parts of the refinery in the Keystone Opportunity Zone so it can receive tax benefits for new construction.
JP Morgan's working capital assistance
J.P. Morgan Ventures Energy Corporation, will supply the refinery with crude and non-crude feedstocks on a just-in-time basis and will purchase refined products from the refinery for offtake.
Add emission credits, which JP Morgan happens to buy and sell
State and federal environmental regulators have agreed to modify a 2005 consent decree to allow the Philadelphia refinery to receive some of the emissions credits assigned to Sunoco's Marcus Hook refinery, which was shut down in December. Those temporary credits should allow the Philadelphia refinery to more quickly implement its expansion plans.
Union leaders contributed to the deal
The union was to vote Monday night on a new three-year contract that gives Carlyle more flexibility on work rules and pensions.