<article><p class="lead">Phillips 66 is seeking a buyer for its 247,000 b/d Alliance refinery in Belle Chasse, Louisiana, as it looks to stem continued losses and move toward lower-carbon businesses. </p><p>The company told <i>Argus </i>that a sale is ongoing "in response to market conditions and the evolving energy landscape." The company declined to disclose the asking price. </p><p>US investment bank Tudor Pickering Holt said it expects Phillips 66 "would be lucky" to fetch $500mn from a potential buyer. </p><p>"[The company's] strategy has long been to use the cash flows from refining to invest in more attractive areas long term like Chemicals and Midstream," the bank said in a research note published this morning. "But as a light sweet crude refinery in a highly competitive region, Alliance is likely one of the least profitable plants in the company's portfolio."</p><p>Although rival Shell will receive about $596mn for selling its half of the 340,000 b/d Deer Park refinery in Texas to Pemex, Tudor Pickering expects market conditions have further pushed down refinery valuations since that deal was announced in May. </p><p>The Alliance refinery segued from maintenance in September of last year into a temporary shutdown through the end of 2020 amid weak refining margins. Phillips 66 invested in building a new 35-mile, 12-inch hydrogen gas pipeline connecting the facility to hydrogen gas sources earlier this year. </p><p>Phillips 66 posted a <a href="https://direct.argusmedia.com/newsandanalysis/article/2240770">$729mn loss in its refining business in the second quarter</a>, and recently announced a $150mn investment in battery maker Novonix with an eye on capturing demand for the components amid the energy transition.</p><p><i>By Dylan Chase</i></p></article>
