Anyone know who the potential buyer may be?
16 replies (most recent on top)
Exxonmobil
Heard it’s Motiva
No lowballers, I know what I got
My best guess is they will now have to hold on to it for a few more years. Alliance was up for sale on 2012 then Hurricane Issac swamped the refinery. They took another swing at selling then Ida hits. Hopefully they’ll sink a few bucks into flood protection (or strong arm the state/feds to do it and then make some upgrades to become more profitable. It’s been there 50 years running continuously. I don’t buy that the facility is not profitable.
Wonder if Buyer will still purchase Alliance after Hurricane Damage? Very little information about sites condition. Anyone know anything
For sale - slightly water-damaged refinery - make offer.
As noted, nothing against the great people working in the facility, but Alliance has been a losing asset since COP days when it was also almost sold or closed. Low complexity. Challenged dock. Non-core market. No integration with other proprietary or partner assets. No rack. Disadvantaged feedstock in, worsened by the need for expensive third party connections to primary pipelines - Plantation and Colonial where it costs almost more than to place a barrel than from Sweeny or Lake Charles. Further, consistently bad safety record. Add hurricanes and the fact that we’ve reached peak demand for fuels and there’s no question.
It’s unfortunate but the writing has been on the wall for a very long time. And you’ll see this play out again across the sector in coming years.
Will be interesting to see how Hurricane Ida plays a role in this.
Their competitors a few miles upriver (PBF) cried wolf a few months ago threatening to close and were rewarded within a month with $90 million in tax breaks over 10 years. Phillips 66 might be doing the same thing - put it on the market, if someone pays out the a-s for it, so be it. If not, up the ante threatening closure, then take the millions in tax dollars.
I can't imagine who would be really interested. The Shell Convent refinery didn't have any serious prospective buyers. Seems like that would be the refinery to buy, if you were in the market for a refinery.
German chemical company doesn't really narrow it down. Lanxess, Covestro, Bayer, Evonik, Henkel, just off the top of my head.
It's true - employees were told on Tuesday
Heard P66 reps are meeting with a German Chemical Company this week
BASF may be correct
What about Chevron, Holly Frontier, Valero or Venture Cap?
Why would they want a refinery?
BASF