December 26, 2022 [Houston Business Journal] – Phillips 66 (NYSE: PSX) is selling a crude oil terminal in Louisiana, which used to be a refinery, to a fellow Houston-based company.
Harvest Midstream, an affiliate of Houston-based oil and gas production company Hilcorp Energy Co., has agreed to purchase Phillips 66’s Belle Chasse Terminal in Plaquemines Parish, Louisiana, Harvest announced Dec. 21. The deal is expected to close in the first quarter of 2023.
The crude oil terminal previously operated as Phillips 66’s Alliance refinery, which sustained flooding and damages during Hurricane Ida in August 2021. Phillips 66 announced plans to shut down the refinery and convert it into a crude terminal facility in the fourth quarter of 2021.
In a Dec. 21 statement, Phillips 66 confirmed its decision to sell the Louisiana terminal to Harvest. The 3,200-acre property has 1 million barrels of active storage capacity and two crude oil loading docks, Harvest said.
“Today’s agreement with Phillips 66 for the Belle Chasse Terminal is a continuation of our commitment to Louisiana, and we look forward to incorporating the facility into our best-in-class service to our customers,” said Harvest CEO Jason Rebrook.
Financial terms of the acquisition were not disclosed. The Houston Business Journal has reached out to both companies for more information.
“Phillips 66 values our employees and the community that supports this facility. There is no change as to how we will operate the terminal until the transaction closes,” Phillips 66 said in a statement. “We will continue to honor our relationships with our community partners, and we remain committed to communicating with employees and community leaders as we complete this transaction.”
Harvest said the acquisition in Plaquemines Parish complements its existing crude pipeline systems in the region. This summer, Harvest closed a deal to assume full ownership of Arrowhead Gulf Coast Holdings LLC, a pipeline and terminal network serving the Louisiana refinery market. Harvest had previously owned a 62.5% stake in AGCH and acquired the remaining 37.5% interest from funds managed by BlackRock Real Assets.
Hilcorp reportedly has been interested in acquiring the Phillips 66 facility for some time. The company had considered purchasing the facility on the lower Mississippi River last year to potentially convert into an oil export terminal, according to media reports.
Phillips 66 had originally tried to sell the Alliance refinery, which the company confirmed was up for sale last August. Just days later, the facility was flooded during Hurricane Ida.
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