Shell sells its Skagit County refinery to this company for $350 million
An Anacortes oil refinery is being sold to an independent refining company headquartered in Texas.
Shell Oil Products U.S. announced in a news release that it is selling its Skagit County refinery to a subsidiary of HollyFrontier Corporation for $350 million in cash plus the value of the hydrocarbon inventory. The deal is expected to close at the end of the year, subject to regulatory approval.
Shell said in the news release that this is part of the company’s strategy to reduce its global refinery footprint to core sites.
“This is another step towards reshaping our refining portfolio to drive resilient returns,” said Robin Mooldijk, Shell’s executive vice president for manufacturing. “HollyFrontier is a strong operator and we believe they will continue the refinery’s legacy of prioritizing safety, environmental performance and care for people at the site and within the community.”
The agreement covers the sale of Shell’s Puget Sound Refinery, the on-site cogeneration facility and the associated logistics infrastructure.
All employees providing support to Shell’s Puget Sound Refinery will be offered employment with HollyFrontier. According to the Shell website, the Shell Puget Sound Refinery employs about 500 people. The website indicates that the refinery is the largest single taxpayer in Skagit County, providing about $75 million in salaries a year.
According to its website, HollyFrontier is headquartered in Dallas and operates a variety of companies, including Petro-Canada Lubricants and Red Giant Oil.
The Puget Sound Refinery is currently designed to process approximately 149,000 barrels per day of crude oil. The refinery produces multiple types of gasoline in addition to fuel oil, diesel fuel, propane, jet fuel, butane and petroleum coke.
The hydrocarbon inventory will be valued at closing based on actual volumes and prevailing market prices. The current value of the hydrocarbon inventory would range from $150 to $180 million assuming current market prices.
This story was originally published May 4, 2021 at 2:40 PM.
