US energy company Phillips 66 is to convert its 255,600 bpd Alliance refinery in Belle Chasse, Louisiana into a terminal facility in 2022.
The refinery has been for sale in recent months but was badly damaged by flooding following Hurricane Ida in August 2021, which caused a protective wall to collapse.
Phillips 66 said at the time that it would repair the damage and restart the refinery and it was rumoured in September 2021 that Hilcorp was interested in buying the refinery. However, chairman and CEO Greg Garland said that after considering various options and the cost of repairs, the company decided on the conversion instead.
The Alliance refinery currently employs approximately 500 employees and 400 contractors.
“Alliance’s existing infrastructure and Gulf Coast location make it an attractive midstream asset. Phillips 66 will continue to be a major refiner with 12 facilities in the US and Europe,” said Garland.
He added: “Our decision was a difficult one, and we understand it has a profound impact on our employees, contractors and the broader Belle Chasse community. We will work to help them through this transition and support them as Alliance takes on a new role in our portfolio.”
In October 2021, Phillips 66 reached an agreement to buy all remaining shares that it did not already own in midstream partnership Phillips 66 Partners, which it originally set up as publicly traded partnership to operate, develop and acquire primarily fee-based crude oil, refined petroleum products and natural gas liquids pipelines, terminals and other midstream assets.
Once the transaction has been completed, Phillips 66 Partners will become a wholly owned subsidiary of Phillips 66.
For more information visit www.phillips66.com