Chevron to Buy Gulf Coast Refinery
Chevron Corp. announced late Wednesday that its Chevron U.S.A. Inc. (CUSA) subsidiary has signed a share purchase agreement to buy Pasadena Refining System, Inc. from Petrobras America Inc. for $350 million.
The acquisition, subject to regulatory approvals and other closing conditions, would add the 110,000-barrel per day Pasadena Refinery near Houston and PRSI Trading, LLC to Chevron’s holdings. It would also give CUSA its second Gulf Coast refinery. Currently, CUSA’s refining network includes facilities in Pascagoula, Miss., Salt Lake City, Utah, and El Segundo and Richmond in California.
“This expansion of our Gulf Coast refining system enables Chevron to process more domestic light crude, supply a portion of our retail market in Texas and Louisiana with Chevron-produced products and realize synergies through coordination with our refinery in Pascagoula,” Pierre Breber, executive vice president of Chevron Downstream & Chemicals, said in a written statement emailed to Rigzone.
In addition to gaining a refinery with light crude processing capacity, Chevron stated that its Pasadena acquisition will give it:
- Direct pipeline connections to increasing industry and equity crude oil production
- Links to major product pipelines and waterborne access to receive and ship crude oil and refined products
- A tank farm with a storage capacity of 5.1 million barrels of crude oil and refined products
Petrobras has been the sole owner of the Pasadena Refinery – located on a 468-acre site along the Houston Ship Channel – since Dec. 2008, according to the Petrobras website. The company states that the facility produces diesel, gasoline and fuel oil.
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