Par Pacific to buy US Oil & Refining’s Washington refinery, assets

Par Pacific Holdings Inc. has signed a definitive agreement to purchase privately held US Oil & Refining Co.’s downstream assets, including the 42,000-b/sd refinery near Tacoma, Wash.

Under terms of the deal, which is scheduled to close in January 2019 subject to customary closing conditions, Par Pacific will acquire 100% of US Oil and Refining’s equity interests for total consideration of $358 million plus net working capital, Par Pacific said.

Alongside the Tacoma refinery—which has the flexibility to optimize its crude slate (over 95% of which currently consists of discounted Bakken and Cold Lake crudes) based on market conditions—the acquisition will include the following US Oil logistics assets connecting to Bakken, Canadian, and Alaskan crude, as well as to Pacific, West Coast, Pacific Northwest, and Rockies product markets:

• 2.9 million bbl of refined product and crude oil storage capacity.

• A proprietary 14-mile jet fuel pipeline.

• A marine terminal with 15 acres of waterfront property.

• A unit train rail-loading terminal with 107 unloading spots.

• A truck rack with six truck lanes and 10 loading arms.

Part of the operator’s more than 3-year strategic growth plan to expand its US mainland refining and logistics presence, Par Pacific said the proposed transaction will connect its existing assets in Hawaii, the Pacific Northwest, and Rockies to create an integrated downstream network with enhanced scale and diversification.

The acquisition also will leave Par Pacific geographically and logistically well-positioned to further source discounted Western Canadian and Bakken crudes, the company said.

Par Pacific currently owns and operates one of the largest energy networks in Hawaii, including the 94,000-b/sd Ewa Beach refinery on Kapolei, a logistics system supplying the major islands of the state, and 91 retail locations.

In addition to its 18,000-b/sd refinery in Newcastle, Wyo., Par Pacific’s Pacific Northwest and Rockies holdings include a logistics system and 33 retail locations, as well as 46% interest in natural gas production company Laramie Energy LLC, which has operations and assets concentrated in western Colorado.

The operator also recently purchased select idled refinery assets from Island Energy Services LLC, which announced it would cease refining operations at its Kapolei refinery in August (OGJ Online, Aug. 31, 2018).

Contact Robert Brelsford at [email protected].