HollyFrontier to buy Puget Sound Refinery from Shell

U.S. refiner HollyFrontier Corp said on Tuesday it would buy a 149,000-bpd refinery in Washington from Shell as part of the European company's strategy to reduce its global refinery footprint. 

HollyFrontier will buy the Puget Sound refinery near Anacortes for $350 million in cash, plus hydrocarbon inventory to be valued at closing with an estimated current value of $150 MM-$180 MM, the companies said.

The transaction is expected to close in the fourth quarter of 2021, subject to regulatory clearance, Shell said.

The sale includes Shell's on-site cogeneration facility and associated logistics infrastructure.

Reuters first reported the oil major was seeking a buyer for the Anacortes refinery in January of 2020.

Shell has been planning to shrink its refining and chemicals portfolio from 14 to six sites with chemical business synergies including its Deer Park, Norco, Pernis, Pulau Bukom, Rheinland and Scotford sites.

In 2020, it began shutting its 211,146-bpd Convent, Louisiana refinery after failing to find a buyer for the plant.

Earlier that year, Shell sold its 156,400-bpd Martinez, California, refinery and logistics assets to PBF Energy for $960 million plus the price for oil and refined products on hand.

HollyFrontier currently operates six North American refineries including El Dorado, Navajo, Tulsa, Woods Cross, Mississauga and Cheyenne, which it is converting into a renewable diesel facility.

HollyFrontier will report first quarter 2021 earnings on Wednesday.

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