US independent petroleum refiner and marketer HollyFrontier Corporation has bought the 149,000 bpd Puget Sound refinery from Shell subsidiary Equilon Enterprises for US$350 million (€290 million).
The complex refinery, with catalytic cracking and delayed coking units, covers an 850 acre site in Anacortes, Washington, US, and sources Canadian and Alaskan North Slope (ANS) crudes. The purchase includes the on-site cogeneration facility and related logistics assets, a deep-water marine dock, a light product loading rack, a rail terminal, and storage tanks with approximately 5.8 million bbl of crude, product and other hydrocarbon storage capacity. It will also include the hydrocarbon inventory, which will be valued at closing and is worth an estimated US$150-180 million.
HollyFrontier says it will fund the acquisition with a one-year suspension of its regular quarterly dividend and cash on hand. The transaction is expected to be completed in Q4 2021.
‘We are excited to announce the acquisition of the Puget Sound Refinery, an asset with a strong record of financial and operational performance. We believe that the Puget Sound Refinery will complement our existing refining business, with sales into premium product markets and advantaged access to Canadian crude. We are committed to the continued safe and environmentally responsible operations of the facility and welcome Puget Sound’s highly skilled workforce to the HollyFrontier family,’ says Mike Jennings, president and CEO of HollyFrontier.
Shell announced that it was putting the refinery up for sale, alongside another in Mobile, Alabama, in March 2020.