(Adds background on Shell divestment strategy, HollyFrontier
refining portfolio)
May 4 (Reuters) - U.S. refiner HollyFrontier Corp
said on Tuesday it would buy a 149,000 barrel per day (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
million to $180 million, 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.
(Reporting by Arunima Kumar in Bengaluru and Laura Sanicola in
New York; Editing by Sriraj Kalluvila and Bill Berkrot)
