Husky Energy Inc. has closed the sale of its 12,000-b/d refinery in Prince George, BC, to Tidewater Midstream & Infrastructure Ltd. for $215 million (Can.) in cash, plus a closing adjustment of about $53.5 million (OGJ Online, Oct. 4, 2019).
As part of the deal—which also includes a contingent payment to Husky of up to $60 million over 2 years, Husky also has entered into a 5-year offtake agreement with Tidewater for refined products from the refinery, including 90% of the nameplate capacity on diesel and gasoline volumes produced at the site, Husky said.
Tidewater previously said it will retain all refinery staff.
The Prince George refinery processes light oil into low-sulfur gasoline and ultralow-sulfur diesel, along with other products.
The refinery sale follows Husky’s previously announced plan to consider selling the Prince George refinery as part of a strategy to focus on core assets in its integrated corridor and offshore business in Atlantic Canada and the Asia-Pacific region, which includes a series of physically linked assets involving upstream thermal crude production, storage, committed pipeline capacity, and refineries (OGJ Online, Jan. 11, 2019).
Contact Robert Brelsford at [email protected].
