Philadelphia Energy Solutions To Close Refinery Damaged By Fire; Gas Prices Spike, Workers Devastated

Philadelphia Energy Solutions (PES) on Wednesday confirmed it will soon close its South Philadelphia oil refinery after last week’s devastating explosions and resulting fire and “position the refinery complex for a sale and restart.” Wholesale gasoline prices surged on news of a closure.

The announcement is expected to set off a scramble among various interest groups -- industry, labor, and climate activists -- over the possible reuse of the 1,400-acre site.

The riverfront property contains extensive infrastructure and fuel storage facilities, including a rail unloading facility, pipeline interconnections, and a link to the seaport.

Philip Rinaldi, the refinery’s former chief executive, is talking to stakeholders about saving the plant, said former U.S. Rep. Bob Brady, who was instrumental in organizing the plant’s 2012 rescue by Sunoco Inc. to stave off a threatened closure.