US biggest privately-owned oil producer Hilcorp is eyeing to purchase Phillips66’s refinery in Alliance, Louisiana for conversion into an oil exports terminal, according to some sources familiar with the issue.
Phillips66 said that the 255,600 bpd occupies 2,400 acres along the Mississippi River and is damaged by Hurricane Ida. At the moment, most of the several feet of water that flooded the plant have been removed and most employees have returned to clean-up of the plant.
John Auers, an economist from refinery-consultants Turner, Mason & Company, commented that the refinery could still have a future in the current energy transition as it is still a viable refinery. Phillips66 does have an incentive to make repairs.
The company plans to repair the storm damages and restart the facility but the marketing process is ongoing. According to the sources, a buyer was scheduled to visit the refinery this week. Phillips66 rejected a request to comment on the matter.
