Thread regarding Phillips 66 layoffs

Alliance Refinery Sale

Anyone know who the potential buyer may be?

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Post ID: @OP+1cv4Lxx4

17 replies (most recent on top)

No lowballers, I know what I got

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Post ID: @gjjc+1cv4Lxx4

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.

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Post ID: @9tsd+1cv4Lxx4

Wonder if Buyer will still purchase Alliance after Hurricane Damage? Very little information about sites condition. Anyone know anything

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Post ID: @7uvd+1cv4Lxx4

For sale - slightly water-damaged refinery - make offer.

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Post ID: @6elk+1cv4Lxx4

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.

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Post ID: @6wms+1cv4Lxx4

Will be interesting to see how Hurricane Ida plays a role in this.

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Post ID: @5pzm+1cv4Lxx4

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.

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Post ID: @2uyi+1cv4Lxx4

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.

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Post ID: @1bhy+1cv4Lxx4

German chemical company doesn't really narrow it down. Lanxess, Covestro, Bayer, Evonik, Henkel, just off the top of my head.

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Post ID: @1ywq+1cv4Lxx4

It's true - employees were told on Tuesday

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Post ID: @1mup+1cv4Lxx4

Plenty of adjacent, company owned land to build a chemical manufacturing complex. Refinery is in a remote area and shady politicians make it easy to get permits.

P66 will dump it off for next to nothing, and will use the sale for street cred with the woke ESG investors.

What little they walk away with will go to fund more inclusion and diversity nonsense and more training cartoons on how to treat trannies in the workplace.

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Post ID: @rvh+1cv4Lxx4

Heard P66 reps are meeting with a German Chemical Company this week

BASF may be correct

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Post ID: @wpe+1cv4Lxx4

What about Chevron, Holly Frontier, Valero or Venture Cap?

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Post ID: @uta+1cv4Lxx4

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