US Phillips 66 to keep Louisiana refinery

01 August 2012 17:15  [Source: ICIS news]

HOUSTON (ICIS)--US refiner Phillips 66 will keep its 247,000 bbl/day Alliance refinery in Belle Chase, Louisiana, the company said on Wednesday.

During its second-quarter earnings release, the company said that it will keep the Alliance refinery “as Gulf coast sweet crude feedstock costs are expected to improve over the long-term”.

In December, the company said it was looking to sell the refinery in order to pay for other projects and shed about $10bn-15bn (€8bn-12bn) in assets during 2010-2012.

“We did make the decision not to sell the Alliance refinery. We think Alliance will create long-term value in the portfolio,” said Phillips 66’s CEO Greg Garland. 

Garland added that the decision was based on both a lack of buying interest and the use of cheaper feedstocks.

“Our view has changed of Gulf coast crudes. We think the refinery has more value today than what people are willing to pay for it,” he said.  

($1 = €0.81)

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By: Anna Matherne

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