HollyFrontier, the Texas company with oil refineries in Tulsa, Kansas, New Mexico and other states recently expanded its holdings with the $350 million cash acquisition of Equilon Enterprises LLC Puget Sound Refinery near Anacortes, Washington.
Equilon does business as Shell Oil Products U.S., a subsidiary of Royal Dutch Shell plc.
The agreement covers the sale of Shell’s Puget Sound Refinery, the on-site cogeneration facility and the associated logistics infrastructure. Shell will retain product offtake agreements to support its existing retail marketing business in the Pacific Northwest. Shell’s off-site logistics assets are excluded from the sale.
- On May 4, 2021, Shell and HollyFrontier Corporation announced that they had signed a sales agreement for HollyFrontier to acquire Shell’s Puget Sound Refinery near Anacortes, Washington.
- The value attributed to the hydrocarbon inventory at closing was approximately $266 million.
- Local employees providing dedicated support to Shell’s Puget Sound Refinery were offered employment with HollyFrontier.
- Shell will maintain Shell branded businesses in the Pacific Northwest and has structured supply/offtake agreements with the new owner such that the Puget Sound Refinery will continue to support Shell’s businesses in the region.
- As part of its Powering Progress strategy, Shell plans to consolidate its refinery footprint to five core energy and chemicals parks. These locations will maximize the integration benefits of conventional fuels and chemicals production while also offering new low carbon fuels and performance chemicals. They also offer future potential hubs for sequestration.
Source: press release