Shell Unloading Anacortes to CVX?

Chevron eyes deal for Shell oil refinery in Pacific Northwest: sources
BY Reuters
— 11:44 PM ET 03/26/2021
By Erwin Seba

HOUSTON (Reuters) - Chevron Corp ( CVX
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) has emerged as a leading contender to buy a Royal Dutch Shell Plc ( RDS/A
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) refinery in the U.S. Pacific Northwest, three people familiar with the matter said on Friday.

Shell has been trying to sell its 145,000 barrel-per-day (bpd) Puget Sound refinery in Anacortes, Washington, for at least a year. Reuters reported in January 2020 that the refinery was for sale.

"As a matter of policy we don't comment on market rumors or speculation," said Chevron ( CVX ) spokesman Braden Reddall,

Shell spokesman Curtis Smith declined to comment.

A deal is not guaranteed and analysts said competing refiners often look at other businesses to evaluate their own operations.

The Puget Sound plant supplies fuel markets in the northwest and competes with plants owned by BP, Marathon Petroleum and Phillips 66. Shell last month settled a seven-year-old dispute with the U.S. Environmental Protection Agency over past air pollution violations from the facility.

Chevron ( CVX
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) has been an active acquirer. It paid $4.1 billion for oil and gas producer Noble Energy last year and three years ago bought a 112,229-bpd Texas refinery for about $350 million.

Shell has been reducing its exposure to refining and last October said it would shrink its global refining portfolio to six sites from 14. The remaining plants will produce both fuels and high-value chemicals.

The Anglo-Dutch oil company permanently closed its 211,146-bpd refinery in Convent, Louisiana, in December as the COVID-19 pandemic crushed demand for gasoline. That plant remains for sale.

After they sold the Martinez refinery in norcal and the big shift to renewables and electricity, it was inevitable they would sell Puget Sound. Wonder how the feds would view the purchase because Chevron would control roughly half of the market share in the areas those 4 refineries supply. The Shell refinery is heavily handicapped compared to the other 3 because Shell was unsuccessful in a very aggressive effort to have a RR spur built to bring in the cheap crude from the interior of the continent. After several years they realized the locals we're not going to let it happen and gave up. The goal is exit downstream in North America and has been for at least 15 years as they have slowly shed off every refinery except 2 in the U.S., and handed supply of most the U.S. stations to other refiners with licensing agreements. Puget is the last remaining outpost where Shell actually supplies the fuel at stations. Shutting Convent was a very clear message in how the Dutch view refining here. If your in that space, my advice is GET THE HE!! OUT.

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