Husky mulls sale of Canadian noncore downstream assets

Jan. 11, 2019
Husky Energy Inc. is undertaking a strategic review that could result in the potential sale of its Canadian retail and commercial fuels business, which includes the 12,000-b/d refinery in Prince George, BC.

Husky Energy Inc. is undertaking a strategic review that could result in the potential sale of its Canadian retail and commercial fuels business, which includes the 12,000-b/d refinery in Prince George, BC.

The decision to review and consider a sale of its noncore downstream assets comes as the company increasingly focuses on core assets in its integrated corridor as well as its offshore business in Atlantic Canada and the Asia-Pacific region, the company said.

Husky said it is considering undertaking the potential disposition independent of the outcome of the company’s proposed acquisition of MEG Energy Corp. (OGJ Online, Oct. 1, 2018).

“Our retail network and the Prince George refinery are excellent assets, with exceptional employees, which have made solid contributions to Husky over the years,” said Rob Peabody, Husky’s chief executive officer. “However, as we further align our heavy oil and downstream businesses to form one integrated corridor, we’ve taken the decision to review and market these noncore properties,” he said.

Husky’s retail and commercial network consists of more than 500 retail outlets, travel centers, cardlock operations, and bulk-distribution sites from British Columbia to New Brunswick, including its myHusky Rewards loyalty program, which has about 1.6 million members.

The Prince George refinery processes light oil into low-sulfur gasoline and ultralow-sulfur diesel, along with other products, supplying refined products to retail outlets in British Columbia’s central and northern regions.

A timeframe for when Husky will make a final decision on the proposed disposition was not disclosed.

Contact Robert Brelsford at [email protected].