Exclusive-Oil producer Hillcorp is looking to buy a closed Louisiana refinery-Source

File Photo: NOAA surveillance photo taken south of Belchas, Louisiana, USA, on August 31, 2021, revealing luster on flooded land at the Phillips 66 Alliance refinery after hurricane Ida has passed. Distribution via NOAA / REUTERS

September 25, 2021

Irwin Seba

Houston (Reuters)-Houston-based oil producer Hillcorp is evaluating the conversion of the Phillips 66 refinery in the Louisiana Alliance to an oil export terminal, four sources familiar with the matter said. rice field.

Hillcorp, the largest private oil producer in the United States with operations from Alaska to Pennsylvania and Texas, did not answer questions about its interest in a 2,400-acre facility along the Mississippi River.

Buyers were planning to visit the refinery this week, sources said.

Phillips 66 declined to comment on the possibility of buyers visiting the refinery this week.

Phillips 66 spokesman Bernard Faras said the hurricane-damaged refinery is still on sale and “the marketing process is underway.” He said the company plans to repair the damage caused by the storm and reopen the facility.

In August, Phillips 66 began a meeting with potential buyers of a 255,600 barrel (bpd) refinery per day on the southeastern coast of Louisiana. Hurricane Ida removed him from the mission last month when the protective wall collapsed and the plant was flooded.

Phillips 66 CEO Greg Garland said last month when he planned to drive the renewable diesel, hydrogen and electric vehicle battery materials business, “The future US refining business is: It will be smaller, not larger. ”

Most of the few feet of water that flooded the plant were cleared and most employees returned to cleaning the plant, people familiar with the operation said.

In June, the US Energy Information Administration announced that last year’s national refining capacity fell by 4.5%, or 848,385 barrels / day, due to sluggish refining profits from a telecommuting policy to reduce gasoline demand.

Andrew Lipow, president of Lipow Oil Associates, a Houston consultant, says it makes sense to turn the Alliance site into a crude oil storage and distribution terminal.

“These refineries are getting older, especially in climates where gasoline demand has peaked,” says Lipow.

The Alliance Refinery is one of three along the Gulf Coast for sale this year.

The other two are Lyondell Basell Industries’ 263,776bpd Houston refinery and Royal Dutch Shell’s closed 211,146bpd Louisiana Convent refinery.

The Alliance refinery may still have a future in the current energy transition, said John Auers, executive vice president of Mason & Company, refinery consultant Turner.

“It’s still a viable refinery,” Auers said. “Many capacities are turned off. It can come back quite powerfully.”

Phillips 66 has an incentive to make repairs, Auers said.

“If it’s operational, you always get more money (for refineries),” Auers said.

(Report by Erwin Seba in Houston, edited by Gary McWilliams, Matthew Lewis, Daniel Wallis)

Exclusive-Oil producer Hillcorp is looking to buy a closed Louisiana refinery-Source

Source link Exclusive-Oil producer Hillcorp is looking to buy a closed Louisiana refinery-Source

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