Sunoco Demolishing Eagle Point Refinery

A three-year demolition program will level the shuttered West Deptford refinery.

The spiderweb of pipes and rusting towers loom large alongside Route 295, a familiar sight for commuters winding through West Deptford.

They won’t be a familiar sight much longer.

Eagle Point’s refinery complex, closed down permanently since early 2010, will be gone within three years, scrapped for parts or hauled to a Pennsylvania landfill, as Sunoco and demolition firm NCM, a national company that’s brought down everything from stadiums to coal-fired power plants, embark on a huge, $11.5-million operation, as detailed in permits filed with the township Feb. 6.

“It’s a major, major project,” township construction official Phil Zimm said, likening it to the demolition of the former Huntsman chemical company site on Mantua Grove Road.

Eagle Point’s demolition is even more large-scale and complex, though, with the two major phases detailed in the permits.

The first will be $4.5 million in removing asbestos-containing material from tanks, pipes and towers at the refinery site, which totals more than 500,000 square feet of insulation and other products. Zimm said the initial work has started on that, and at least some, if not all of that phase could be done within a month or so.

Once all the asbestos-containing material is removed, inspected by a third party and deemed OK by the township, the major demolition work can take place: NCM will take out 22 units, which make up the bulk of the shuttered refinery, in a $7 million operation that will last between 18 months and three years.

In total, the permits detail 1,714,600 square feet of property that will be cleared of buildings, pipes and equipment, down to the bare concrete foundations, leaving nothing behind above ground.

The permits indicate no work will be done to the foundations or any underground installations at the refinery, however. A 225-megawatt power station adjacent to the refinery will also be untouched.

Sunoco spokesman Thomas Golembeski said the plan is to pave the way for new investment at the Eagle Point complex.

"We've been saying for a while now that we're trying to sell the remaining equipment,” he said.

That remains the plan, Golembeski said, and the company will sell as many pieces as possible, and scrap the rest along with the unsalable portions of the demolished refinery.

Leveling the refinery doesn’t mean Sunoco is divesting itself of the 1,100-acre property, some of which was sold to subsidiary Sunoco Logistics last year, Golembeski said.

"It is still a very important part of our investments," he said.

Specifically, Golembeski pointed to the terminal facility at Eagle Point as being a key component of the site’s value. There is the possibility Sunoco could use Eagle Point to store and transport ethane, one component of natural gas production in the Marcellus Shale formation in central and western Pennsylvania, though Golembeski wouldn’t say specifically whether Eagle Point or one of the company’s other river properties would be the primary destination for ethane.

West Deptford officials said Sunoco has been closed-mouth even with the township as to the future possibilities for the property.

“It really depends on what Sunoco’s future plans are with it,” township administrator Eric Campo said. “Hopefully the markets change, and that will bring about some viability there.”

Mayor Ray Chintall called the demolition of the refinery “a shame,” but said it’s mostly out of the township’s hands at this point.

“It’s their property, we can’t decide for them,” he said.

Still, Chintall said the fact Sunoco still plans to use the property as a storage and terminal facility gives at least some hope—and leaves some ratables.

“They’ll still be part of the community, which is a plus, rather than just completely pulling out and leaving it vacant,” he said.

Prior to its shutdown, the Eagle Point refinery refined around 150,000 barrels of sweet crude oil, processing the raw product into everything from gasoline to jet fuel to home heating oil, as well as petrochemical products such as toluene and xylene.

Sunoco cited increasing costs and greater global refining capacity as the major reasons for idling Eagle Point in October 2009, before closing the gates forever just four months later.

Similarly, the oil giant has announced plans to sell or shut down its Marcus Hook and Philadelphia refineries by July, citing similar economic pressures that led to the Eagle Point shutdown. Marcus Hook has since been idled since that initial announcement.

Eagle Point was also rumored to be for sale, potentially to investors in India, though company officials have denied those reports since they first surfaced.

Sunoco, which bought the Eagle Point property for $111 million in 2004, and former owners Coastal/El Paso have also battled West Deptford over the property tax assessment at the site.

A tentative settlement has been reached on Sunoco’s appeals, though terms of that settlement have yet to be released. Chintall said negotiations are ongoing with both Sunoco and Coastal/El Paso to resolve those disputes.

Kathleen Sherf February 16, 2012 at 11:53 AM
Happy to see it go! Let's hope some sensitivity to the deer population that graze there now is shown...
tom sullivan February 16, 2012 at 03:55 PM
My question is was this information available , that being the demolition of the equipment and such, prior to entering into a tentaive settlement on Tax Appeals. Mayor Chintall states that Sunoco "has been pretty closed mouthed about this" . Mt though is if Sunoco wasn't upfront as to their intentions of demolition prior to settlement agreement, than agreement should be negated and re-worked. If I'm mistaken, the property is taxed and assessed including equipment . Demolition of the plant equipment will reduce even further the tax ratable enjoyed now. All i'm saying is if the committee did not have the demolition information available to them beforehand, they need to re-work any tax appeal settlement taking into account future tax ratable lossess as a result of demolition. Sunoco cannot have it both ways at taxpayer expense.
Joey Peaches February 16, 2012 at 04:07 PM
Kathleen, the deer are fine. I'm glad you're more concerned about them than the local jobs and economy. Typical lib
Dan Mig February 16, 2012 at 08:11 PM
The U. S. Let the steel, cars, and countless other manufacturers go over seas this is just the latest part of our Economy to be taken away. Are there going to be any jobs left here? Maybe we should ship the politicians over there so they can send some of OUR JOBS. Back where they belong
Bryan Littel (Editor) February 16, 2012 at 08:22 PM
Tom - that bit you threw in quotes isn't a direct quote from the mayor, it's a paraphrase of several conversations with several township officials about whether Sunoco has said anything to anyone in township government about future plans for the site. It's disingenuous to imply otherwise. The mayor and township administrator have both said that while the tentative settlement has been reached, there are still negotiations going with Sunoco to finalize everything. That settlement was voted on back on Jan. 17. The permits were stamped Feb. 6.
larry youngblood February 16, 2012 at 08:53 PM
I'm wondering now that sunoco is demolishing this site,how long will it stay vacant ( like huntsman vacated site ).Does anyone know if the huntsman site is genrating taxes. There are still some units that will be operating.Since their closure 450 jobs were lost. Even the ls power plant is only producing 30 jobs.sizable ratio for this area.Could the township be self destructing.I don't think it's time to dweel on statements made about the high school or any other political nonsense. The current administration get this town back to where it was for the residents sake.
Bryan Littel (Editor) February 16, 2012 at 09:11 PM
The old Huntsman property is still generating tax revenue, though less than when the facility was still there.
Carolyn Galligan February 16, 2012 at 09:58 PM
I'm not sure how you translated Kathleen's concern about the deer into having no regard for the loss of jobs. Sharing concern for the welfare of any living being is exactly what is lacking in many people regardless of how you yourself may want classify them politically. I really found your statement a little disturbing. By the way, I'm a lifelong conservative.
tom sullivan February 17, 2012 at 02:58 AM
brian, my problem is with sunoco . read what I wrote again. if sunoco wasnt up front when tenative settlement was reached, it should be reworked knowing now the property will be worth much less minus equipment. dont make anything more than that. please dont lecture me on journalism. this is about big oil being big liars
Bryan Littel (Editor) February 17, 2012 at 04:00 AM
I don't disagree with you - simply felt the need to set the record straight on who said what on what point.
tom sullivan February 17, 2012 at 04:55 PM
Sunoco = Disingenuous. My comments were not about the Mayor to set the record straight, they were about Sunoco . Anyone being disingenuous it's Sunoco. Closing Marcus Hook plant today laying everyone off and will close Philadelphia plant if they can't sell it by June. Great neighbors they are. Scuttling and demolishing Eagel Point, further diminishing their tax obligation. Any Tax appeal settlement has to be to the benefit of West Deptford Township and their residents at this point. I get the whole idea of today's thought process that it's cheaper to settle rather than go to court, not just in this case, but in many types of court cases. Shame of it is that is what our society has become. It's too expensive to defend yourself even when you may be right because our tax dollars that have to fund a defense cannot match big oil dollars. That's my entire point. we shouldn't be real nice to these folks at the negotiating table.
SpeakUPNJ February 27, 2012 at 05:32 PM
Let me see if I can help you "get it" Carolyn. Kathleen was HAPPY TO SEE IT GO...read that again...got it. Happy to see jobs, good jobs go, forever gone from the community that needs them desparately. So if you missed the sensitivity for the community in that statement. It's because it's NOT THERE . BUT Kathleen is very "sensitive" to the deer population of So Jersey! So I am not sure that you call yourself Conservative is relevant and I do not care. But Joey nailed it...Kathleen is a poster child for the Progressive Liberal mindset today that wants others to suffer real economic pain to truly fulfill her "sensitivity fantasies" for nature and the environment. THAT IS what she wrote Carolyn. It was easy to interpret Kathleen's wise crack comments. Carolyn ,you are just not sentivie enough to the Progressive Liberal approach to directing your life in America today!.
Carolyn Galligan February 28, 2012 at 03:09 AM
Thank you SpeakupNJ, for trying to help me with your rambling, sarcastic, gibberish but, I wasn't asking you to help me "get it". We can interpret Kathleen's statement either way but, I’m comfortable with mine. No one wants to see jobs leave the community but, if the refinery has no chance of being operational, then who wouldn’t be happy to see it demolished. Our community isn’t unique in this situation with other refineries closing as well. You seem to project quite a bit of anger towards the very people who are affected by this simply because they cared about the welfare of deer. Kathleen is not to blame and I don’t recall the deer stealing any jobs. Your hatred is regrettable because problems aren’t solved with hatred.
Mary February 29, 2012 at 02:36 PM
All westville neighbors going to be contaminate with Asbestos and hazardous material because the company NCM from Californiahe is a iresponsable contractor this company don't care about the public, our kids, so please cal this number . 714 672 3500 the general manager Mr. Zaich
kk shrivastava May 09, 2013 at 12:09 PM
Great to know this. We as refiner may be intrested in buying some part of the plant. Can some one help in sharing info?? my email id is : kks_57@rediffmail.com


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