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Refiner, terminal operator and US East Coast bunker supplier, Hess Corporation, has pledged its commitment to its energy marketing businesses despite announcing that it aims to pursue the sale of its refining business and terminal network.

The company's terminal network is located along the U.S. East Coast and has a total of 28 million barrels of storage capacity in 19 terminals, 12 of which have deep water access.

The terminals previously served as the primary outlet for Hess’ share of production from its Hovensa joint venture refinery, most of which was used to supply Hess’ retail and energy marketing businesses. With the closure of the Hovensa refinery in 2012, as well as Hess' ability to access refined products from third parties to supply these marketing businesses, Hess said the terminal system is no longer core to the company’s operations.

The company’s St. Lucia oil storage terminal in the Caribbean with 10 million barrels of capacity will also be included in the package for divestiture.

In addition to the proceeds from the sale of the terminal network, Hess said the transaction should also release approximately $1 billion of working capital for redeployment to fund future growth opportunities.

Commenting on its retail and energy marketing businesses, the company said: "Hess will continue its long term commitment to the retail and energy marketing businesses and take all the necessary steps to ensure supply security, competitive prices and high quality service for its customers."

The New Jersey-based Port Reading refinery, also known as Hess Refinery, is due to be closed by the end of February. It is comprised solely of a fluid catalytic cracking unit and primarily manufactures gasoline and components used for blending heating oil. The refinery has incurred losses in two of the past three years. Hess said the financial outlook for the facility is expected to remain challenged due to the requirement for future expenditures to comply with environmental regulations for low sulphur heating oil and the weak forecast for gasoline refining margins.

"By closing the Port Reading refinery and selling our terminal network, Hess will complete its transformation from an integrated oil and gas company to one that is predominantly an exploration and production company and be able to redeploy substantial additional capital to fund its future growth opportunities," said John Hess, Chairman and CEO.

Hess has retained Goldman Sachs as its financial advisor for the divestiture of the terminal network.

Hess Corporation is a leading global independent energy company primarily engaged in the exploration and production of crude oil and natural gas, and the marketing of refined petroleum products, natural gas and electricity.

As a marine fuel supplier, the company delivers bunker products to clients in the ports of New York, Norfolk, Baltimore and Philadelphia.