Equilon Enterprises LLC d/b/a Shell Oil Products U.S., a subsidiary of Royal Dutch Shell plc, has reached an agreement for the sale of its Puget Sound Refinery near Anacortes, Washington to a subsidiary of HollyFrontier Corporation, an independent refiner headquartered in Texas, for $350 million in cash plus the value of the hydrocarbon inventory. The transaction is expected to close in Q4 2021, subject to regulatory clearance and other customary closing conditions.
The divestment is part of Shell’s strategy to reduce its global refinery footprint to core sites integrated with the company’s trading hubs, chemicals plants and marketing businesses. These high-value energy and chemical parks will produce more low-carbon fuels and speciality chemicals for our customers.
“This is another step towards reshaping our refining portfolio to drive resilient returns,” said Robin Mooldijk, Shell’s EVP for Manufacturing. “HollyFrontier is a strong operator and we believe they will continue the refinery’s legacy of prioritizing safety, environmental performance and care for people at the site and within the community.”
The agreement covers the sale of Shell’s Puget Sound Refinery, the on-site cogeneration facility and the associated logistics infrastructure, as well as the product offtake agreements in support of Shell’s existing retail marketing business in the Pacific Northwest. Shell’s off-site logistics assets are excluded from the sale.
Shell thanks the Anacortes community for being great neighbors over the past several decades, as well as our numerous community partners across Skagit County for the many years of connection, collaboration and support.