Equilon Enterprises LLC d/b/a Shell Oil Products U.S. (Shell), 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 (HollyFrontier), 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.

Notes:

  - The Puget Sound Refinery is currently designed to process approximately 149,000 barrels per day of crude oil. The refinery produces multiple types of gasoline in addition to fuel oil, diesel fuel, propane, jet fuel, butane and petroleum coke. It also produces nonene and tetramer, which are chemicals used in a variety of plastic products.
  - The hydrocarbon inventory will be valued at closing based on actual volumes and prevailing market prices. The current value of the hydrocarbon inventory would range from $150 to $180 million assuming current market prices and historic inventory volumes under normal operating conditions.
  - As this deal progresses towards closing, our Goal Zero safety program will remain in full effect, with a focus on a safe transition and care for our employees throughout this time of change.
  - All employees providing dedicated support to Shell’s Puget Sound Refinery will be offered employment with HollyFrontier.

About Royal Dutch Shell plc

Royal Dutch Shell plc (LSE: RDSA) is incorporated in England and Wales, has its headquarters in The Hague and is listed on the London, Amsterdam, and New York stock exchanges. Shell companies have operations in more than 70 countries and territories with businesses including oil and gas exploration and production; production and marketing of liquefied natural gas and gas to liquids; manufacturing, marketing and shipping of oil products and chemicals and renewable energy projects.

About HollyFrontier

HollyFrontier is principally an independent petroleum refiner that produces high-value light products such as gasoline, diesel fuel, jet fuel, specialty lubricant products and specialty and modified asphalt.
HollyFrontier owns and operates refineries located in Kansas, Oklahoma, New Mexico and Utah and markets its refined products principally in the Southwest U.S., the Rocky Mountains extending into the Pacific Northwest and in other neighboring Plains states.
In addition, HollyFrontier produces base oils and other specialized lubricants in the U.S., Canada and the Netherlands, and exports products to more than 80 countries, marketed under the following commercial brands.