MOSCOW (MRC) -- US refiner HollyFrontier Corp said on Tuesday it would purchase a 149,000-bpd refinery in Washington from Shell as part of the European company's strategy to reduce its global refinery footprint, according to Hydrocarbonprocessing.
HollyFrontier will buy the Puget Sound refinery near Anacortes for USD350 million in cash, plus hydrocarbon inventory to be valued at closing with an estimated current value of USD150 MM-USD180 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.
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 USD960 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.
Ethylene and propylene are feedstocks for producing polyethylene (PE) and polypropylene (PP).
According to MRC's ScanPlast report, Russia's estimated PE consumption totalled 576,270 tonnes in the first three month of 2021, up by 4% year on year. Low density polyethylene (LDPE) and high density polyethylene (HDPE) shipments increased. At the same time, PP shipments to the Russian market totalled 410,890 tonnes in January-March 2021, up by 56% year on year. Supply of homopolymer PP and PP block copolymers increased.
Royal Dutch Shell plc is an Anglo-Dutch multinational oil and gas company headquartered in The Hague, Netherlands and with its registered office in London, United Kingdom. It is the biggest company in the world in terms of revenue and one of the six oil and gas "supermajors". Shell is vertically integrated and is active in every area of the oil and gas industry, including exploration and production, refining, distribution and marketing, petrochemicals, power generation and trading.