Husky Energy has entered into definitive agreements to acquire the 50 000 bpd Superior refinery, located in Superior, Wisconsin, USA. The company is set to buy the refinery from Calumet Specialty Products Partners, L.P. for US$435 million in cash. The deal is subject to customary closing adjustments.
The Superior refinery has a permitted throughput capacity of 50 000 bpd. It currently produces approximately 9000 bpd of asphalt, 17 500 bpd of gasoline and 10 900 bpd of diesel, as well as heavy fuel oils. The transaction includes the acquisition of the refinery’s associated logistics, including two asphalt terminals, 3.6 million bbls of crude and product storage and a fuels and asphalt marketing business.
“Acquiring the Superior refinery will increase Husky’s downstream crude processing capacity, keeping value-added processing in lockstep with our growing production,” said Husky’s CEO, Rob Peabody. “Upon closing, this new asset will immediately contribute to increased earnings and funds from operations.”
The transaction accelerates Husky’s strategy to capture full value from the company’s heavy oil production from Western Canada, as outlined at its 2017 Investor Day.
With the addition of the Superior refinery, Husky’s total downstream capacity will increase to approximately 395 000 bpd. The company plans to retain the approximately 180 workers at the refinery.
Read the article online at: https://www.hydrocarbonengineering.com/refining/15082017/husky-energy-to-acquire-midwest-refinery/