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P66 converting Alliance refinery to terminal

  • Märkte: Oil products
  • 08.11.21

Phillips 66 will convert its 250,000 b/d Alliance refinery in Louisiana into a terminal facility in 2022, after the facility was damaged and idled by Hurricane Ida in late August.

"We made this decision after exploring several options and considering the investment needed to repair the refinery following Hurricane Ida," said Phillips 66 chief executive Greg Garland. "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."
Phillips 66 reported a $1.3bn third quarter impairment for Alliance, which was shut ahead of Ida's landfall in Louisiana on 29 August and remained mired in flooding and flaring weeks afterward in its third quarter earnings. The refinery in Belle Chasse was reduced to a carrying value of $200mn on the company's asset sheet after factoring storm damages.
The storm's timing was less than ideal for the company, as Phillips 66 confirmed a desire to sell the facility just days before Ida's arrival. The company acknowledged on 29 October that it was assessing other potential uses for the facility.


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