Exclusive-oil maker Hillcorp looking to buy a closed Louisiana refinery – source

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FILE PHOTO: A NOAA surveillance photo taken south of Belchas, Louisiana, USA, on August 31, 2021, reveals flashes over flooded land at the Phillips 66 Alliance refinery after Hurricane Ida passes. NOAA / REUTERS . delivery through

September 25, 2021

Irwin Seba

HOUSTON (Reuters) – Houston-based oil producer Hillcorp is evaluating the conversion of the Philips 66 refinery into an oil export terminal in the Louisiana Alliance, four sources familiar with the matter said. Rice field.

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

Sources said the buyers were planning to visit the refinery this week.

Philips 66 declined to comment on the prospect of buyers coming to the refinery this week.

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

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

Philips 66 CEO Greg Garland said last month when he planned to run the renewable diesel, hydrogen and electric vehicle battery materials business, “the American refining business of the future is: it will be small, not big.”

People familiar with the operation said that most of the few feet that filled the plant with water was cleared and most workers returned to clean the plant.

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

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

“These refineries are getting old, especially in a season where gasoline demand is at its peak,” says Lipo.

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

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

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

“It’s still a viable refinery,” Auers said. “Many capabilities have been shut down. It could come back with great strength.”

The Philips 66 has had incentives to make repairs, Auers said.

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

(Reporting by Irwin Seba in Houston, Edited by Gary McWilliams, Matthew Lewis, Daniel Wallis)

Exclusive-oil maker Hillcorp looking to buy a closed Louisiana refinery – source

Source Link Exclusive-oil maker Hillcorp seeks to buy a closed Louisiana refinery

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