Par Pacific takes ownership of Billings refinery, related assets

Par Pacific Holdings Inc., Houston, has completed its purchase of a 63,000-b/d refinery located along the Yellowstone River just outside of Billings, Mont., as well as certain associated midstream assets in Montana and Washington, from ExxonMobil Corp. and subsidiaries ExxonMobil Oil Corp. and ExxonMobil Pipeline Co. LLC (OGJ Online, Oct. 20, 2022).

As part of the deal that closed on June 1, Par Pacific takes full ownership of the Billings refinery, which will be operated by newly formed subsidiary Par Montana LLC, Par Pacific said in a release and separate filing to the US Securities and Exchange Commission.

Alongside 100% interest in the high-conversion, complex Billings refinery that processes low-cost Western Canadian and regional US Rocky Mountain crudes, Par Pacific also acquired a 65% interest in an adjacent cogeneration plant, as well as:

• 100% interest in 2.848 million bbl of storage tankage at Billings.
• 100% interest in the 70-mile, 55,000-b/d Silvertip crude oil pipeline that allows the refinery direct access to Rocky Mountain crude grades and—via its connection to the Express pipeline—nearly all Western Canadian crudes from Hardisty and Edmonton trading hubs.
• 40% interest in the 750-mile, 65,000-b/d Yellowstone refined products pipeline to serve clean-product markets from Billings to eastern Washington.

In a late-September 2022 presentation, Par Pacific said its then-proposed acquisition would additionally include interest in the following six storage terminals that provide advantaged access to key market areas throughout Upper Rockies and Pacific Northwest:

• 100% interest in the Bozeman terminal; 89,000 bbl.
• 100% interest in the Helena terminal; 89,000 bbl.
• 50% interest in the Missoula terminal; 368,000 bbl.
• 50% interest in the Thompson Falls terminal; 140,000 bbl.
• 100% interest in the Spokane terminal; 350,000 bbl.
• Variable interest between 0-100% across six tanks in the Moses Lake terminal; 171,000 bbl.

Par Pacific said combined storage capacity across the refinery and logistics locations totals 4.1 million bbl.

The new owner said it also has agreed to a long-term marketing arrangement under which it will supply fuel to about 250 ExxonMobil-branded retail locations as part of the finalized transaction.

With the Billings acquisition now completed, Par Pacific is now focusing on small-scale projects to improve throughput and reliability at the refinery to increase rates closer to nameplate capacity, said Will Monteleone, Par Pacific’s president.

Par Pacific confirmed it continues to evaluate unidentified renewable fuels opportunities to supplement the Billings refinery’s conventional fuel production and use the company’s existing market position in Washington to reduce the carbon intensity of its fuel sales in accordance with the recently enacted Washington low-carbon fuel standard, which aims to cut the state’s auto emissions by 20% by 2038.